Asia Pacific
Japan’s Wages Rise For First Time In 22 Months In Abe Boost. Japan’s salaries increased for the first time in almost two years in January as companies boosted pay for part-timers, aiding Prime Minister Shinzo Abe’s effort to end 15 years of deflation. Base pay excluding bonuses and overtime rose 0.1 % from a year earlier, the first gain in 22 months, the labor ministry said in Tokyo today. Overall pay fell 0.2 %, the first drop in three months. (Bloomberg)
RBA Reiterates Likely Period Of Rate Stability After Holding. Australia’s central bank reiterated that it’s likely to maintain a period of record-low interest rates and renewed a reference to the currency’s strength. Governor Glenn Stevens and his board kept the overnight cash-rate target at 2.5 %, saying in a statement that housing prices “have increased significantly” and the Aussie “remains high by historical standards.” The Reserve Bank of Australia’s pause was predicted by all 32 economists surveyed. (Bloomberg)
USA
Obama Budget Predicts Strongest U.S. Growth Since 2005. The U.S. economy will grow this year at its fastest pace since 2005, helping reduce the annual average unemployment rate for a fourth straight year even as market borrowing costs rise, the Obama administration predicted. Gross domestic product will expand 3.1 % in 2014 after rising 1.9 % last year, the administration said in forecasts accompanying its 2015 budget plan released today in Washington. The jobless rate will average 6.9 % this year, compared with 7.4 % last year, and average 6.4 % in 2015, according to estimates based on information as of mid-November. (Bloomberg)
Europe
UK Construction Growth Slows As Poor Weather Takes Toll. The UK's construction sector grew at a slower pace last month as the tough weather conditions hit housebuilding. The Markit/CIPS purchasing managers' index (PMI) for the sector slipped to 62.6 in February. That was down from January's reading of 64.6, which was the highest since August 2007, but still well above the 50 level that marks expansion. Markit said disruptions relating to "adverse weather conditions" contributed to the slowdown. Housebuilding was particularly hit. (BBC)
Belgian Economy Gets A Boost From Investment, Consumers. Belgium’s economy expanded at a faster pace than estimated in the fourth quarter as companies boosted investment and consumers spent more. Gross domestic product grew 0.5 % in the fourth quarter, up from the 0.4 % estimated earlier, the National Bank of Belgium said today. That is the strongest gain since the first quarter of 2011. Business investment rose 0.9 % in the quarter and consumer spending increased 0.6 %. (Bloomberg)
Currencies
Dollar Above ¥102 As Ukraine Concern Fades. The dollar rose against the yen Tuesday, as investors appeared to be reassured by news that the Russian troops taking part in combat exercises near Ukraine’s border would be returning back to their bases. The dollar jumped to ¥102.27 from ¥101.39 late Monday. The euro moved up to $1.3743 from $1.3732 late Monday, while the British pound edged higher to $1.6666 from $1.6660. The ICE dollar index , a measure of the dollar’s strength against six rivals, rose to 80.145 from 80.081 late Monday. In other forex trading, the Australian dollar rose to 89.48 U.S. cents from Monday’s level of 89.28 U.S. cents. (Market Watch)
Commodities
Oil Falls Nearly 2 % As Russia-Ukraine Fears Ease. Crude oil fell nearly 2 % on Tuesday on comments from President Vladimir Putin that eased concerns Russia would escalate its military intervention in Ukraine's Crimea peninsula. April Brent crude settled $1.90 lower at $109.30 a barrel, after it ended the previous session at its highest close this year. U.S. crude for April delivery settled $1.59 lower at $103.33, after rising to $105.22 on Monday, the highest level since Sept. 19. (Reuters)
Gold Falls 1 % As Ukraine Tensions Ease. Gold fell about 1% on Tuesday as assurances from Russia's president that military force would be a last resort in the Ukraine crisis prompted investors to take profits from the previous day's rally. Spot gold fell 0.9 % to $1,337.86 by 2:10 p.m. EST (1910 GMT), its worst daily loss in more than a month since Jan. 30. Among other precious metals, silver dropped 0.7% to $21.22 an ounce, while platinum rose 0.5% to $1,462 an ounce and palladium gained 1.9% to $760.25 an ounce. (Reuters)