Malaysia

OPR Retained At 3.00%. Just as hoped, the Bank Negara Monetary Policy Committee opted to retain the Overnight Policy Rate at 3.00%. Fundamentally, the central bank continues to look at the global economy as a whole to be on the road to recovery. However, they have noted that recovery has been bumpy, both in the developed economies as well as those in the emerging markets. There continues to be some strong caution on strong volatilities persisting in the financial markets as a result of policy changes and geopolitical uncertainties. Regardless, the current OPR level is believed to remain supportive of the Malaysian economy. (Please refer to Economic Viewpoint for further comments)

Asia Pacific

Thai Consumer Confidence Slides. Thailand’s consumer confidence tumbled to a 12-year low in February, a survey has showed, as political unrest continued to take a toll on consumption and investment in South-East Asia’s second-biggest economy. The consumer confidence index from the University of the Thai Chamber of Commerce fell to 69.9 in February, the lowest since November 2001 from 71.5 in January. It was the 11th straight month of declines. (Reuters)

China 7.2% Growth Would Meet 2014 Target, Minister Says. China’s Finance Minister Lou Jiwei said growth as low as 7.2 % would meet this year’s target of “about” 7.5 % as he tried to moderate expectations for an economy at risk from swelling debt. The key is employment, not the exact level of growth, Lou said at a press briefing in Beijing today as part of the annual meeting of the National People’s Congress, the legislature. Expansion of 7.2 % or 7.3 % would be consistent with the goal announced yesterday, he said. (Bloomberg)

Australia Reports Bigger-Than-Expected Trade Surplus. Australia has reported better-than-expected trade and retail sales data for January, sending its dollar to a one-week high. The country's trade surplus rose to $1.4bn Australian dollars ($1.3bn) - its highest in almost three years. Retail sales rose by 1.2% for the ninth month in a row. (BBC)

USA

Drop In Claims Shows U.S. Employers Are Upbeat. Fewer Americans than projected applied last week for unemployment benefits, showing companies are confident economic growth will rebound after winter weather depressed demand. Jobless claims declined by 26,000 to 323,000 in the week ended March 1, the least since the end of November and fewer than any economist forecast in a Bloomberg survey, a Labor Department report showed today in Washington. Other data showed consumers’ views of the economy reached an almost seven-month high, according to Bloomberg’s weekly index of sentiment. (BBC)

US Factory Orders Drop Adds To Slowdown Concern. New orders for U.S. factory goods fell more than expected in January and shipments also slipped, adding to signs of a recent slowdown in manufacturing activity. The Commerce Department said on Thursday new orders for manufactured goods declined 0.7 %. December's orders were revised to show a 2.0 % drop instead of the previously reported 1.5 % fall. Economists polled by Reuters had forecast new orders received by factories slipping 0.4 %. Shipments of new orders fell for a second month in January. Orders excluding the volatile transportation category rose 0.2 %, reflecting gains in defense capital goods and in computers and electronic products. (Reuters)

Europe

ECB Ups 2014 Growth Forecast, Inflation To Pick Up Slowly. The European Central Bank (ECB) upped its growth forecast for 2014 on Thursday, sending the euro higher, but downgraded its outlook for inflation. Speaking at his monthly press conference, ECB President Mario Draghi predicted the euro zone economy would grow by 1.2 % this year. This was better than the 1.1 % growth forecast issued by the central bank at the end of last year. "The ongoing recovery is expected to proceed, albeit it at a slow pace," Draghi told journalists in Frankfurt, Germany. He reiterated that risks to the euro area remained "to the downside." Growth in 2015 and 2016 is seen at 1.5 % and 1.8 % respectively. (CNBC)

European Central Bank Keeps Interest Rates At 0.25%. The European Central Bank (ECB) has kept its benchmark interest rate at its record low of 0.25%. The bank slightly raised its forecast for growth to 1.2% in 2014, but dropped its inflation estimate. Eurozone interest rates have remained unchanged since November 2013, when the bank said it expected "a prolonged period of low inflation". In February, Eurozone inflation was at 0.8%, well below the ECB's 2% target, which has prompted deflation worries. However, the ECB has been confident that eurozone economies are recovering from recession. (BBC)

UK Interest Rates Kept At Record Low. UK interest rates have been held at 0.5% for another month, the Bank of England has said. The decision by the Bank's Monetary Policy Committee comes five years after the record low level was first introduced. It is the first rate decision since the bank amended its "forward guidance" policy that linked borrowing rates to unemployment figures. Rates are unlikely to rise before the spring of 2015, analysts believe. The Bank also kept its £375bn quantitative easing (QE) programme unchanged. (BBC)

German Factory Orders Rebound In Sign Economic Growth Picking Up. German factory orders rebounded in January in a sign that the pace of recovery in Europe’s largest economy is accelerating. Orders, adjusted for seasonal swings and inflation, rose 1.2 % from December, when they fell a revised 0.2 %, the Economy Ministry in Berlin said today. Economists forecast a gain of 0.9 %, according to the median of 36 estimates in a Bloomberg News survey. Orders surged 8.4 % from a year ago when adjusted for the number of working days. (Bloomberg)

Currencies

Euro Hurtles Toward $1.39; Jobs Report On Tap. The euro surged against the dollar Thursday after European Central Bank President Mario Draghi continued to brush off the threat of deflation, decreasing the chance of further easing in the short term. The euro jumped more than one cent to $1.3865 from $1.3731 late Wednesday. The British pound rose to $1.6742 from $1.6722. The ICE dollar index , a gauge of the dollar’s strength against six rivals, fell to 79.658 from 80.106 late Wednesday. lsewhere, the dollar rose to ¥103.13 from ¥102.28 late Wednesday. The Australian dollar rose to 90.86 U.S. cents from 89.86 U.S. cents. (Market Watch)

Commodities

Brent, U.S. Oil Rise As Ukraine Risks Return. U.S. oil rose on Thursday after falling to near three-week lows as traders reconsidered the geopolitical risk posed by worsening diplomatic relations over Russia's intervention in Crimea. U.S. crude fell to an intra-session low of $100.13 at 12:56 p.m. EST, where it found support near the 200-day moving average of $100.02. U.S. oil settled 11 cents higher at $101.56 per barrel. Brent settled 34 cents higher at $108.10, but was not able to push higher than its 200-day moving average. (Reuters)

Gold Rises 1 Pct On Euro Gain; ECB Leaves Rate Unchanged. Gold rose on Thursday, boosted by the European Central Bank's decision to not take fresh action to inject liquidity into the euro zone market, which helped weaken the dollar and increased bullion's currency-hedge appeal. Spot gold rose 1 % to $1,350.31 an ounce by 3:48 p.m. EST (2048 GMT), reversing losses earlier in the session. Among other precious metals, platinum rose 0.3% to $1,479.25 an ounce, trading near a six-month high of $1,486.00 hit on Wednesday, as a six-week old wage strike at the world's three top platinum producers in South Africa showed no signs of ending. Palladium rose to a one-year high of $781.50 an ounce, and was last trading up 1.1 % at $777.40 an ounce. Silver rose 1.3 % to $21.44 an ounce. (Reuters)