Recap 1-21-14




  • German ZEW declined to 61.7 vs 62 exp and 64 prev
  • China Data:
  1. GDP rose 7.7% vs 7.6% exp and 7.8% prev
  2. IP rose 9.7% vs 9.8% exp and 10.0% prev
  3. Retail Sales stable at 13.6% as exp vs 13.7% prev

China added $42bn to the market overnight to combat higher overnight costs for banks heading into the New Year holiday. The seven day repo rate dropped from 7.2% to 5.44%.

A paper published Mon by the BOE finds that one of the channels through which economists had thought QE provides stimulus to the economy may not be as effective as believed. CB asset purchases don’t spur portfolio rebalancing to the extent many thought. WSJ

Upcoming Data:

  • Tue: Australia CPI
  • Wed: BoJ, UK Employment, BoE Minutes, BoC, China HSBC Flash Mfg PMI
  • Thu: EU PMI, Canada Retail Sales, US Jobless Claims, Markit PMI, EU Consumer Confidence, US Existing Home Sales
  • Fri: Carney Speaks, Canada CPI