Global

IMF Says U.S. Growth Leads As Russia, Brazil Soften. Stronger U.S. growth this year and next will help the world economy withstand weaker recoveries in emerging markets including Brazil and Russia, the International Monetary Fund said. The U.S. is providing a “major impulse” to global growth that’s still lumbering amid weakness in Japan and parts of Europe, the IMF said in a report today. While the U.K. and Germany are adding to momentum, developing nations face new risks and Russia’s takeover of Crimea last month injects geopolitical tension that’s “casting a pall” on the region, the fund said. The IMF predicted global growth of 3.6 % this year, compared with a January estimate of 3.7 %. Next year, the expansion will accelerate to 3.9 %, unchanged from the prior forecast. (Bloomberg)

Asia

Japan Current Account Rebounds To First Surplus In 5 Months. Japan’s current account rebounded into surplus in February from a record deficit the previous month as income from overseas investments outweighed deficits in trade and services. The 613 billion yen ($5.9 billion)surplus was the first in five months, the Ministry of Finance reported in Tokyo today. The median forecast in a Bloomberg News survey of 29 economists was for an excess of 618.1 billion yen. (Bloomberg)

BOJ Refrains From Boosting Stimulus As Recovery Seen. The Bank of Japan refrained from adding to unprecedented monetary stimulus as Governor Haruhiko Kuroda said the blow to the economy from last week’s sales-tax increase will fade during the summer. The central bank will continue to expand the monetary base at a pace of 60 trillion yen to 70 trillion yen ($682 billion) per year, it said in a statement today in Tokyo, as forecast by all 36 economists in a Bloomberg News survey. At a press briefing, Kuroda said the BOJ would always adjust policy without hesitation as needed, including easing or tightening. (Bloomberg)

Indonesia Holds Benchmark Rate As Inflation Pressure Eases. Indonesia’s central bank kept its key interest rate unchanged for a fifth straight meeting, extending a pause in monetary tightening as inflation slowed. Bank Indonesia Governor Agus Martowardojo and his board maintained the reference rate at 7.5 %, the central bank said in Jakarta today, a decision predicted by all 21 economists surveyed by Bloomberg News. It also kept the deposit facility rate unchanged at 5.75 %. (Bloomberg) News projected a 22,500 job increase and a jobless rate unchanged at 7 %, according to median forecasts. (Reuters)

Europe

U.K. Industrial Output Surges More Than Forecast. U.K. industrial production rose more than economists forecast in February, bolstered by a surge in factory output that points to a strengthening recovery. Production increased 0.9 % from January, exceeding the 0.3 % median forecast of 26 economists in a Bloomberg News survey. In its gross-domestic product estimate published after the data, the National Institute of Economic and Social Research predicted economic growth accelerated to 0.9 % in the first quarter, the quickest pace in four years. (Bloomberg)

IMF: UK Economic Growth To Reach 2.9% In 2014. The International Monetary Fund (IMF) says the UK economy will be the fastest-growing in the G7 this year. It says the UK will grow 2.9% in 2014, up from a January estimate of 2.4%, and will see growth of 2.5% in 2015. Overall, the IMF says the global economy strengthened at the end of 2013. It forecasts global growth of 3.6% this year and 3.9% in 2015. But it sees risks in emerging markets and warns of low inflation in advanced economies and geopolitical issues. (BBC)

Renzi Cuts Italy Growth Forecast With Call For Rich To Give More. Italian Prime Minister Matteo Renzi cut the government’s forecast for economic growth and renewed his promise to slash benefits for top civil servants, saying the working poor are shouldering too much of the pain. Gross domestic product will expand 0.8 % this year, Renzi said late yesterday in a news conference in Rome after his cabinet approved his multi-year budget plan. That compares with the 1% growth projected in September by Renzi’s predecessor, Enrico Letta. Italy’s GDP contracted 1.9 % last year, the second decline in a row. (Bloomberg)

Currencies

Euro Hovers Around $1.38 For April High. The euro rose against the dollar Tuesday, trading at levels last seen before European Central Bank President Mario Draghi said that central-bank officials had discussed quantitative easing as an option to fight falling inflation. The euro rose to $1.3797 from $1.3742 late Monday. That’s the highest level since March 25’s $1.3827 and near April 1’s value of $1.3795, according to FactSet. The ICE dollar index, a measure of the currency’s strength against six rivals, fell to 79.759 from 80.222 late Monday. The dollar fell to 101.79 yen from ¥103.06 in the prior session. The British pound increased to $1.6749 from $1.6607. The Australian dollar rose to 93.60 U.S. cents from 92.68 U.S. cents. (Market Watch)

Commodities

U.S. Crude Oil Surges 2 Pct On Weak Dollar, Technical Trade. U.S. crude oil prices rose more than 2 % on Tuesday in a technical-driven rally boosted by a weaker U.S. dollar and forecasts for a draw on stockpiles of domestic oil products. U.S. crude rose $2.27 to hit a session high of $102.71 a barrel, before giving up some gains to settle $2.12 higher at $102.56 a barrel. Brent rose $2.03 to a session high of $107.85 a barrel. It settled $1.85 higher at $107.67 a barrel. (Reuters)

Gold Rises As Dollar Drops, Ukraine Tensions Rise. Gold rose 1 % on Tuesday on a sharply lower dollar and as renewed tensions between the United States and Russia over Ukraine burnished bullion's safe-haven appeal. Spot gold was up 1% at $1,308.75 an ounce by 3p.m. EDT (1900 GMT), having reached a two-week high of $1,314.43in earlier trade. Among other precious metals, silver rose 0.9 % to $19.99 an ounce, while platinum was up 1.1 % at $1,437.25 an ounce and palladium gained 1.7 % to $774.10 an ounce. (Reuters)