Asian stock markets and most commodities fell after Chinese GDP and other economic data came in below economists' estimates. The Nikkei and Hang Seng both fell 1.5% and the MSCI Asia Pacific Index was 1% lower. (Bloomberg)
China's Q1 GDP growth was 7.7%, missing estimates. The country reported 7.7% year-on-year growth while median economist forecasts were for 8% according to a Reuters poll. Industrial production grew 9.5%, compared to 10% for the same period in 2012 and retail sales rose 12.4% in the quarter, 1.9 percentage points lower than last year. (Financial Times)(Reuters)
Gold, silver prices tumble: Gold for immediate delivery dropped as much as 3.9% to $1,425.75 an ounce, the lowest level since April 2011, while silver fell 5% to its lowest level since November 2010. (Bloomberg)
Global economy in a rut: "The global economy is stuck in a rut, unable to sustain a decent recovery and susceptible to a sudden stall, according to the latest Brookings Institution-Financial Times tracking index of recovery." (Financial Times)
Troika officials arrive in Lisbon today to assess a new round of austerity measures as the government struggles to keep the country's €78bn rescue programme on track and avoid a second bailout. The mission will determine payment of the next €2bn installment of Portugal's bailout loans and final approval of an agreement to give Lisbon seven more years to pay them back. (Financial Times)
"BT will significantly undercut the pricing of Sky subscriptions for pubs as the telecoms group attempts to snatch some of the £300m market for its new sports channel launching this summer... Sky has already offered some large pub groups heavy discounts of up to 30%, people with knowledge of recent negotiations told the Financial Times." (Financial Times)
Hopes of full payout for Lehman Europe creditors rise: Creditors of the European arm of the bank may receive payment with interest. "In a report sent out to creditors on Friday, administrators PwC said there was a "reasonable chance" of repayment in full of the £15bn in unsecured claims, following a string of legal victories against other defunct Lehman entities in recent months." (Financial Times)
COMMENT AND CURIOS:
- Wolfgang Münchau: One currency, many values. (Financial Times)
- BoJ triggers emerging market fund inflows. (Wall Street Journal)
- Ed Luce: Why the US envies Germany. (Financial Times)
- Oil tanker woes. (Wall Street Journal)
- Dividend recaps are back in Europe: fastest pace since the credit boom. (Financial Times)
- Lucy Kellaway: Worst-performing employees are often the most engaged. (Financial Times)
- World Bank cuts China 2013 forecast to 8.3% from 8.4%. Really. (Reuters)
- Top hedge fund managers saw a big fall in returns last year. (Financial Times)
OVERNIGHT MARKETS: DOWN
Asian markets
Nikkei 225 down -199.08 (-1.48%) at 13,286
Topix down -15.86 (-1.38%) at 1,133
Hang Seng down -336.00 (-1.52%) at 21,753
US markets
S&P 500 down -4.52 (-0.28%) at 1,589
DJIA down -0.08 (0.00%) at 14,865
Nasdaq down -5.21 (-0.16%) at 3,295
European markets
Eurofirst 300 down -10.77 (-0.90%) at 1,182
FTSE100 down -31.75 (-0.49%) at 6,384
CAC 40 unchanged 0.00 (0.00%) at 3,729
Dax down -126.86 (-1.61%) at 7,745
Currencies
€/$ 1.31 (1.31)
$/¥ 97.66 (97.70)
£/$ 1.53 (1.53)
Commodities ($)
Brent Crude (ICE) down -2.15 at 100.96
Light Crude (Nymex) down -2.52 at 88.77
100 Oz Gold (Comex) down -61.60 at 1,439
Copper (Comex) down -3.65 at 331.25
10-year government bond yields (%)
US 1.73%
UK 1.73%
Germany 1.26%
CDS (closing levels)
Markit iTraxx SovX Western Europe -0.69bps at 100.82bp
Markit iTraxx Europe +2.99bps at 110.96bp
Markit iTraxx Xover +8.42bps at 442.68bp
Markit CDX IG +0.47bps at 82.03bp
Sources: FT, Bloomberg, Markit
