What you need to know before markets open
- The Russian President Vladimir Putin won the 77% majority in presidential elections to serve his 4th term of 6-year long presidency.
- The Rightmove property price index increased in February with the national average price moving back above 300K.
- Actual inflation figures saw the Eurozone headline inflation actually decelerating to 1.1% y/y in February while core inflation remained at 1.0% y/y.
Monday’s market moving events
- Japan’s trade balance reached a deficit of ¥-201 billion in February, down from ¥-994. billion in January.
- Rightmove house price index rose 0.8% m/m to £300,001 in February. Over the year the UK property prices rose 1.5% y/y, while London marked the seventh months on year-to-year price decrease in February.
- Italian industrial output is expected to rise 0.8% m/m in February, but decelerate to 1.9% over the year.
- The Eurozone trade balance is expected to reach a surplus of €23.6 billion in January.
- The Eurozone construction output is seen rising 0.6% m/m while increasing 1.3% over the year in January.
- Atlanta Federal Reserve Bank President Raphael Bostic is scheduled to participate in an armchair chat on the Community Reinvestment Act at the "National Interagency Community Reinvestment Conference" in Miami, at 13:00 GMT
Major market movers
- The US Dollar is set to be supported by the Fed raising rates for the first time under the chairmanship of Jerome Powell.
- As the second tier indicators are due on Monday, the FX market is getting ready for Wednesday’s Fed rate hike.
Friday’s macro summary
- German wholesale prices fell -0.3% m/m while decelerating to 1.2% y/y in February.
- The Eurozone labor cost index rose less than expected by 1.5% y/y in the final quarter of 2017.
- The Eurozone inflation decelerated to 1.1% y/y in February, down from 1.2% y/y in the previous month. The core inflation rose in line with the expectation by 1.0% in February.
- The Bank of England's Financial Policy Committee (FPC) sees signs of rising domestic risk appetite in mortgage market at high loan-to-income ratios. In terms of disorderly Brexit risk, the FPC expects the UK banking system could continue with Brexit risks not warranting additional capital buffers for banks. The FPC will conduct stress testing of the UK leading banks the same way as in 2017, taking into account new accounting rule for loan loss provision.
- The US housing starts are seen decelerating to 1.28million while building permits are seen falling to 1.32 million in February.
- The Canadian manufacturing sales are seen falling -0.8% m/m in January.
- The US industrial production increased unexpectedly strongly by 1.1% m/m in February.
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