Malaysia

World Bank Gives Thumbs Up To M'sia Subsidy Rationalisation Plans. Malaysia's shift to targeted subsidies with its subsidy rationalisation plans and upcoming implementation of the Goods and Services Tax (GST), is a good policy that will benefit those who really need them, said World Bank Country Director Ulrich Zachau. "What Malaysia is doing in terms of reducing untargeted subsidies and moving towards the improvement of targeted subsidies, is a good policy. "Many beneficiaries of subsidies don't need them, they are going to lose those perks while people really in need will continue in getting them," said Ulrich, who is based in Bangkok. (Bernama)

USA

Growing Job-Opening Concerns Dent U.S. Confidence. Americans grew concerned in April that jobs have become more difficult to land, prompting an unexpected drop in confidence from a six-year high. The Conference Board’s sentiment index decreased to 82.3 from 83.9 a month earlier, a reading that was stronger than initially estimated and the highest since January 2008, the New York-based private research group said today. Another report showed home prices in 20 cities rose at a slower pace. (Bloomberg)

Home-Price Gains In U.S. Cities Cooled In February. Home prices in 20 U.S. cities rose at a slower pace in the year ended February as the residential real-estate market cooled. The S&P/Case-Shiller index of property values increased 12.9 % from February 2013, the smallest 12-month gain since August, after rising 13.2 % in the year ended in January, a report from the group showed today in New York. The median projection of 33 economists surveyed by Bloomberg called for a 13 % advance. (Bloomberg)

Europe

UK Economic Growth Quickens To 0.8% As Recovery Broadens. U.K. economic growth accelerated in the first quarter as the recovery broadened, leaving output excluding oil and gas back above its pre-recession peak. Gross domestic product expanded 0.8 % from the final three months of 2013, when it grew 0.7 %, the Office for National Statistics said today in London. That compares with a median forecast of 0.9 % in a Bloomberg News survey. Growth from a year earlier was the most in more than six years. (Bloomberg)

German Inflation Misses Estimates As ECB Pressure Mounts. German inflation (GRCP2HYY)accelerated less than economists forecast in April, increasing pressure on the European Central Bank to add stimulus in the euro area. Inflation,calculated using a harmonized European Union method, was 1.1 %, up from 0.9 % in March, the Federal Statistics Office in Wiesbaden said today. Economists predicted a rate of 1.3 %, according to the median of 21 estimates in a Bloomberg News survey. (Bloomberg)

Spanish Jobless Rate Rises To 25.93%. Spain's unemployment rate climbed to nearly 26% in the first quarter of 2014, official data showed Tuesday, as millions searched in vain for a job in a halting recovery from recession. Despite emerging gingerly from a two-year downturn in mid-2013, Spain is still failing to significantly dent one of the highest unemployment rates in the industrialised world. The unemployment rate climbed to 25.93% in the first three months of 2014, up from 25.73% in the previous quarter, the National Statistics Institute said. (AFP)

Euro-Area April Economic Confidence Unexpectedly Declines. Euro-area economic confidence unexpectedly fell in April, increasing pressure on the European Central Bank as it considers unprecedented steps to avert the risk of deflation. An index of executive and consumer sentiment decreased to 102 from a revised 102.5 in March, the European Commission in Brussels said today. The median estimate in a Bloomberg News survey of 27 economists was for an increase to 102.9. (Bloomberg)

Currencies

Dollar Up Vs. Euro After Soft German Inflation. The U.S. dollar rose against the euro Tuesday after a softer-than expected reading on German inflation added to growing concern about the euro zone’s low inflation, which could prompt further easing from the European Central Bank if it persists. The euro fell to $1.3809 from $1.3851 late Monday. The ICE dollar index, which measures the greenback against a basket of six rivals, rose to 79.814 from 79.695 late Monday. The pound rose to $1.6829 from $1.6809 late Monday. In other trade, the dollar moved up to ¥102.63 from ¥102.46 late Monday. The Australian dollar inched up to 92.68 U.S. cents from 92.59 U.S. cents. (Market Watch)

Commodities

Oil Rebounds As Geopolitical Concerns Resurface, Crude Stocks Build. Oil prices rose on Tuesday as traders refocused on geopolitical risks from an outbreak of violence in Libya to Russia's intervention in Ukraine. June Brent crude futures settled at $108.98 per barrel, up 86 cents, or 0.8 %, after spending much of the day above $109 per barrel. The gain pared Monday's 1.4 % drop. U.S. crude for June delivery added 44 cents to settle at $101.28 per barrel, up 0.44%. It had moved as high as $102.20 earlier in Tuesday's trading. (Reuters)

Gold Edges Up Ahead Of Fed Meeting, Ukraine Fears Support. Gold rose slightly but remained below $1,300 an ounce on Tuesday as the market focused on the U.S. Federal Reserve's policy meeting and expectations for strong U.S. data, with prices underpinned by uncertainty over Ukraine. Spot gold inched up 14 cents to $1,295.74 an ounce by 4:28 p.m. EST (2028 GMT). Silver was down 0.6 % to $19.45 an ounce. Spot platinum gained 0.5 % to $1,424.25 an ounce while spot palladium climbed 0.6 % to $803.25 an ounce. (Reuters)