European Morning Update
News from Australia:
Prior Current
Australia
January Westpac Leading Index - 0.2% - 0.1%
March DEWR Skilled Vacancies +4.7% +4.1%
Q4 Dwelling Starts +1.3% +2.6%
February Preliminary BoP Imports (MoM) +6.0% - 1.3%
Numbers from Australia this morning were soft but not excessively and basically reflect the gentle slowdown in the economy. The leading index implied growth moderating to around 3.5%-3.8% so no one is going to get too bearish at this stage.
Dwelling Starts were still firm in Q4 but it is likely that the two interest rate hikes this year will take the steam off the housing market. Jobs ads were soft again and tend to suggest that the record low unemployment may not last for too many months if the trend continues.
Releases from Japan:
Forecast Actual
Japan
January All Industry Activity Index (MoM) +0.1% +0.0%
Industrial activity was a little softer in January but that wasn't far from forecasts and again does reflect the mild downturn that has already been seen, so no great surprises.
However, the Reuter's Tankan report was not quite so rosy with corporate sentiment deteriorating due to the continuing rise in raw material prices. The Manufacturer's MI slipped by 1 point to +8 which is less than half the level seen 3 month's ago at +21.
The scene is set for the BOJ's Tankan report on April 1st.
