China growth rate falls short of expectations, Sterling gains as house prices fall

[RTFX-Trading]

China growth rate falls short of expectations, Sterling gains as house prices fall


What's new:

U.K: Annual Retail sales fell in March on jobs outlook
China: China sees a record declining growth rate
OPEC: OPEC sees a declining global demand for oil

Today:
01h30: JP APR Reuter Tankan
09h15: CH Mar PPI M/M, previous -0.60%
11h00: EU Harmonised CPI, forecast 0.50%, previous 0.40%.
11h00: EU Industrial Production, forecast -2.40%, previous -3.50%.
14h30: US Housing reports, forecast $ 0.55 billion, previous $ 0.583 billion.
14h30: US weekly jobless claims, forecast 655,000, previous 654,000.
14h30: CAN Manufacturing Survey.
16h00: US Philadelphia Fed Manufacturing Index and Existing Home Sales, forecast 2%, previous -5.40%.  


Rates in Asia and Indices:

Overnight Ranges and Indices:

EURUSD: 1.3269 – 1.3171
USDCHF: 1.1467 – 1.1399
GBPUSD: 1.5069 – 1.4965
USDJPY: 99.52 – 98.84
DowJones: 8,029.62, +1.38%
NASDAQ: 1,626.80, +0.07%
Nikkei: 8,737.87, -0.06%
Gold: $891.70
Crude Oil: $49.68


Comments:

China's economy saw a slowing down in the first quarter to its weakest pace on record. Nevertheless, but an improvement in data for third month of 2009 offered an optimistic view that the worst may well be over. Annual economic growth slowed to 6.1 percent from 6.8 percent in the fourth quarter of 2008.

In the UK, the BRC Retail Sales Monitor announced transaction values declined -1.2% since the beginning of year to March. The metric has fallen in 9 out of the past 10 months. Customers still seem worried about jobs and their own finances, resulting in a tighter control of their pockets. Unemployment rate is up to a 10-year high at 4.3% in February and is expected to average as high as 7.3% this year. Bloomberg economists forecast total output will shed -3.6% in 2009. Sterling gained largely on Wednesday, entices by some brighter UK housing data. This was in turn aided by a negative sentiment piling on the euro. The pound hit a 6-week high against the euro around 88 pence while it briefly rose above the key $1.5 level for the first time since January. Sterling got a boost after data on Wednesday showed house prices in England and Wales continued to fall last month but the pace of decline was the slowest in a year and sales volumes picked up from record low levels.

An under pressure dollar which awakened in the early Asian trading was weighed down by gains in the EUR, GBP and AUD as investor risk appetite advanced in the wake of the Fed Beige Book and a strong gain on the DJIA. AUD-USD, which had fallen just short of reaching recent highs at 0.7316, dropped below its pivot point to 0.7233. EUR-USD pulled back from 1.3269 to 1.3171 while Cable, which traded to 1.5069, descended to 1.4965. USD-JPY, which was capped at 99.52, dropped back to 98.84. Asian stocks which rally strongly at the open, with the Nikkei holding to 0.50% of the initial 3% gain after revelation of a decreasing China GDP growth rate.

Good Day

Nicolas Longchamp
RTFX Ltd
Head Office
Level 2, Suite 2, The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
Tel:  +356 27 78 01 35
Fax: +356 21 41 24 58
Web: www.rtfx.com
This message and any attachments (the "message") are intended solely for the addressees and are confidential. If you receive this message in error, please delete it and immediately notify the sender. Any use not in accordance with its purpose, any dissemination or disclosure, either whole or partial, is prohibited except with formal approval. The internet cannot guarantee the integrity of this message. RTFX Ltd (and its subsidiaries) shall (will) not therefore be liable for the message if modified. Do not print this message unless it is necessary, consider the environment. RTFX Ltd holds a Category 3 license issued by the Malta Financial Services Authority.