Financial Markets
Global equities advanced on Monday as rallying oil and weaker dollar boosted demand for risker assets. A pick-up in Chinese industrial demand also supported shares. MSCI’s gauge of world stocks rose 0.5 percent, while the MSCI Emerging Market Index gained 1 percent. Meanwhile, U.S. Treasury prices fell amid improved risk appetite. The yield on the benchmark U.S. 10-year Treasury note climbed 2 basis points (bps) to 1.744 percent, while the yield on the 30-year bond rose 3 bps to 2.582 percent.
Argentinian government is planning to return to international bond markets for the first time since a $100 billion default in 2001. The country is looking at debt due in 2021, 2026, and 2046 and total anywhere from $12 billion to $15 billion. Argentina has hired 7 banks to manage its forthcoming bonds, and the offering is expected on Monday of next week.
Advanced Markets
The U.S. wholesale inventories shrank in February by 0.5 percent (m/m), seasonally adjusted, from downwardly revised drop of 0.2 percent in January. The decrease was above the forecasted fall of 0.2 percent, and was largely driven by a decline in nondurable inventories.
Capital spending in Japan retreated in February, with machinery orders shrinking by 9.5 percent (m/m), compared to a robust surge of 15 percent in January. This was the first contraction since November 2015. However, the decline was better than the forecasted drop of 12 percent. This is partly attributed to the recent strengthening of the yen and weak global demand which inhibited exports.
Denmark’s inflation rate receded to zero percent in March (y/y), seasonally adjusted, down from 0.3 percent in March 2015. This was below the market expectation of a stable inflation rate at 0.3 percent, fueling fears that Denmark could be headed to the deflationary territory.
Emerging and Frontier Economies
Latin America and the Caribbean
Mexico’s industrial production increased 2.6 percent (y/y) in February following a downwardly revised 0.8 percent rise in January. It is the largest gain since January 2015, as manufacturing, utility production and construction all increased, while mining output fell. On a monthly basis, industrial production shrank 0.1 percent, following a 0.7 percent rise in January.
Middle East and North Africa
Qatar's economy advanced 4.0 percent (y/y) in Q4 2015, following a 3.8 percent rise in Q3. Growth was supported by the non-mining sectors of the economy, led by the finance and business services sector expanding 8.2 percent. The mining and quarrying sector grew only 0.7 percent. On a quarterly basis,
GDP decline 0.5 percent.
Sub-Saharan Africa
Consumer prices in Rwanda increased 5.8 percent (y/y) in March, following 6.1 percent growth in February. It was the lowest figure since October 2015, as food prices rose at a slower pace, while housing and transport cost rose. On a monthly basis, prices grew 1.6 percent.