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Calendar event / Yesterday at 21:00 GMTpreviousforecastactualMed Reserve Bank of New Zealand Official Cash Rate announcementMed Cash Rate2.7533Med Cash Rate (Bps)+25+25+25
Squawk / Yesterday at 14:05 GMTNew home sales plummets 14.5% month-on-month to 384,000 in March in the US, far from the consensus expectation of +2.3%. Furthermore the decline in new home sales in February was revised to 4.5% from 3.3%.
Sales declined most in the Midwest to 51,000 from 65,000, a drop of 21.5% m/m, followed by the West and South. The Northeast recorded a minor increase to 27,000 from 24,000.
While the report surprised consensus it would not come as a shock to those watching the housing starts series, which had been signalling a drop in sales (chart 1).
Article / Yesterday at 9:57 GMT
European PMIs: Growth ahead but deflation threat increasingThe latest purchasing manager indices for Europe suggest further economic growth and possibly improving employment – with only France going nowhere fast. At the same time, deflationary pressures keep on building, making the European Central Bank's decision to provide further monetary stimulus particularly hard.Read the article
Squawk / Yesterday at 9:41 GMTPortugal has just finalised its first 10-year government bond auction in three years. The target of EUR 500-750 million was achieved (750mn) at an average yield of 3.5752% and a bid-to-cover ratio of 3.47.
Squawk / Yesterday at 9:14 GMTThe government-to-GDP ratio climbed to 92.6% in the euro are in 2013 from a revised 90.7% in 2012 (90.6% initially). This is the highest debt-to-GDP ratio on record.
Squawk / Yesterday at 8:13 GMTThe euro area PMI composite index hit 54 in April (preliminary) vs. 53 expected and 53.1 prior. This is the highest level since May 2011 when it stood at 55.8 and suggests that the recovery in the euro area has continued in Q2. In Q1 the composite index average 53.1, consistent with growth of 0.2 to 0.3 percent quarter-on-quarter.*
The manufacturing index printed 53.3 vs. 53 expected and prior while the service index printed 53.1 vs. 52.5 expected and 52.2 prior.
* The Q1 GDP report will be released May 15.
Squawk / Yesterday at 7:48 GMTThe preliminary April report on German PMI is out, printing 56.3 vs. 54 expected and 54.3 prior for the composite index. Manufacturing printed 54.2 vs. 53.8 expected and 53.7 prior while services rose to 55 vs. 53.3 expected and 53 prior.
Overall a solid report, which signals that the recovery continues at a robust pace in the German private sector. I expect the economy to grow at least 1.5 percent this year from just 0.4 percent in 2013 and 0.7 percent in 2012.
Full report: http://www.markiteconomics.com/Survey/PressRelease.mvc/12201026cdcd4270bd6e985a45333ef7
Article / Yesterday at 6:49 GMT
Saxo Trade Navigator: Wednesday, April 23The Saxo Trade Navigator provides you with daily technical insight into almost 200 instruments ranging from FX to equities, commodities and bonds.Read the article
Squawk / Yesterday at 6:19 GMTEuroSTOXX 50 Future ($FESX_F) Re-energizes Bull Theme; Targets 3175/85
European benchmark average bullish shift through 3134
• We stated in our last client report that “the bias into Tuesday and midweek is for a push up to challenge 3134, with a break here becoming more likely” and the push above here highlights a shift to a more bullish tone again.
• Above 3134 now aims up to modest resistance at 3148, but with real risk this week back to challenge the 3175 cycle high and key long-term retrace target at 3185.
• Overshoot risk, more likely into May, will be to 3200 and then Fibo targets at 3219 and 3233.
• The 8-day RSI is positive, but not OB, leaving scope to go still higher this week
• WHAT CHANGES THIS?
• Below 3098 eases bull risks; through 3054 signals a neutral tone, only shifting negative below 3007
Please see full report with levels and latest audio-visual analysis here: http://members.marketchartist.com/Daily/eurostoxx.pdf
Daily Adjusted Continuation and Weekly charts
Article / Yesterday at 5:16 GMT
3 Numbers To Watch: Eurozone PMIs, US PMI and new home salesToday’s key numbers to watch include flash April PMI data for the Eurozone and the US, along with the monthly report on new home sales in the US for March.Read the article