Global

· Global Business Growth (PMI) at Five-Month High in February. Global business activity picked up at the fastest pace in five months during February as new orders flooded in, even though companies raised prices, a business survey showed on Wednesday. JPMorgan's Global All-Industry Output Index, produced with Markit, jumped to 53.9 in February from January's 53.0. It has now held above the 50 mark that divides growth from contraction since October 2012. "The breadth of the expansion is encouraging, with output growth accelerating across both the manufacturing and service sectors," said David Hensley, a director at JPMorgan. An index measuring prices charged rose to a three-month high of 50.6, but the increases didn't stop the new-orders index from reaching a five-month high of 54.0. A global PMI covering the service industry rose to a five-month high of 54.0 from January's 53.0. Global manufacturing activity also accelerated in February, a similar survey showed on Monday. The index combines survey data from countries including the United States, Japan, Germany, France, Britain, China and Russia. (Reuters)

Asia Pacific

· India Surprises with Second Interest Rate Cut. The Reserve Bank of India has cut its key interest rate, in a surprise move for the second time this year. The central bank in Asia's third-largest economy lowered its policy repo rate by 25 basis points to 7.5% after making a similar cut in mid-January. The repo rate is the level at which the central bank lends to commercial banks. Citing a weaker economy, both of the reserve bank's cuts this year have taken place outside scheduled policy meetings, surprising the market. The rupee rose as much as 61.88 against the US dollar - its strongest since the beginning of February - after the move. Meanwhile, the benchmark BSE Sensex index rose 1.4% to hit a record high of 30,010.91 - the first time its crossed the 30,000 mark. (BBC)

· Indian Services Growth at Eight-Month High in Feb - HSBC PMI. Activity in India's services industry expanded at its fastest pace in eight months in February as improving domestic demand drove a surge in new orders, a business survey showed on Wednesday.. The HSBC Services Purchasing Managers' Index, which surveys around 350 private companies and is compiled by Markit, rose to 53.9 in February from 52.4, its highest since June 2014. A reading above 50 indicates growth. The new business sub-index, which measures demand, jumped to an eight-month high of 54.1 from 52.1, and while optimism moderated it remained fairly high. (Reuters)

· China Feb HSBC Services PMI Edges Up to 52.0 as Orders Improve. Activity in China's services sector grew modestly in February as new orders rose at their quickest pace in three months, a private survey showed just a few days after the central bank cut interest rates to stimulate the world's second-largest economy. The HSBC/Markit Services Purchasing Managers' Index (PMI) picked up to 52.0 last month from January's 51.8 and remained above the 50-point level that separates contraction from growth in activity on a monthly basis. A sub-index for new orders rose to 52.2 in February from 51.2 in January and the sub-index measuring new business also rose. Official surveys showed on Sunday that growth in the services sector picked up to 53.9 last month from January's 53.7, which the National Bureau of Statistics attributed in part to strong holiday spending during the Chinese New Year. Accounting for 48% of China's $10.2 trillion economy last year, the services sector has weathered the growth downturn better than factories have, partly because it depends less on foreign demand. (Reuters)

· Japanese Workers Get Smaller Share of Corporate Earnings Despite Record Profits. Millions of Japanese workers are taking home their smallest share of corporate income in two decades as companies build record cash hoards and abstain from substantial wage raises seen by Prime Minister Shinzo Abe as critical to a durable economic recovery. A seasonally adjusted estimate by the independent NLI Research Institute shows worker compensation fell as a percentage of corporate income in 2014 to the lowest level since 1991. By contrast, companies piled up 332 trillion yen ($2.75 trillion) in internal reserves as of the end of last year on the back of record profits while increasing the number of low-paid, nonregular jobs to curb fixed personnel costs. (Reuters)

· Australia Economy Finds Spark of Life in Consumer Spending. Australia's economy grew moderately last quarter as a strong trade performance and the largest rise in consumer spending in almost three years helped offset softness elsewhere. Wednesday's data showed gross domestic product expanded by 0.5% in the fourth quarter, compared to the previous quarter when it rose by 0.4%. "The good news is we've now completed 23 years of continuous growth," said Michael Blythe, chief economist at Commonwealth Bank. "The bad news is we're still running below trend..." The result matched market forecasts, which was a relief to many analysts who had feared the risks were for a weaker outcome. The economy grew 2.5% for all of 2014 well short of the 3.25% that is considered its ideal running pace. (Reuters)

Americas

· Faster Services Growth in U.S. Points to Resilience. Service industries unexpectedly expanded at a faster pace in February, highlighting the resilience of the U.S. economy as companies navigated a work slowdown at West Coast ports and inclement winter weather. The Institute for Supply Management’s non-manufacturing index increased to 56.9, boosted by a pickup in employment, from the prior month’s 56.7, the Tempe, Arizona-based group said Wednesday. Progress in the labor market helped drive gains at service providers including restaurants and retailers even as a contract dispute at West Coast ports hampered timely delivery of merchandise. (Bloomberg)

· U.S. Private Sector Adds Jobs in February, but Growth Slows – ADP. Private employers added fewer jobs than expected last month, with the gains declining as well from January's revised level as growth slowed in some sectors, a payrolls processor report showed on Wednesday. The ADP National Employment Report, jointly developed with Moody's Analytics, showed a gain of 212,000 private-sector jobs. Economists had forecast the ADP to show a gain of 220,000 jobs. January's private payrolls were also revised upward to 250,000 from the previously reported 213,000. The report showed moderating employment gains in sectors such as manufacturing, goods producing, and services. For instance, serviceproviding employment rose by 181,000 jobs in February, compared with growth of 206,000 in the sector in January. The manufacturing sector added just 3,000 jobs in February, well below January's 15,000. (Reuters)

· Brazil Raises Rate to Highest Since 2009 After Prices Surge. Brazil raised borrowing costs for a fourth straight meeting to the highest level in almost six years after monthly inflation jumped the most since 2003. The board, led by President Alexandre Tombini, maintained the pace of monetary policy tightening with a half-point increase to 12.75%, as expected by 59 of 63 economists surveyed. The vote was unanimous and took into consideration “the macroeconomic scenario and the inflation outlook,” according to the central bank statement. (Bloomberg)

 Europe

· Euro zone Business Growth (PMI) at 7-Month High in February. Price cutting and a weaker currency helped euro zone business activity accelerate in February, according to surveys published just before the European Central Bank embarks on a trillion-euro stimulus programme. Survey compiler Markit said the surveys pointed to first quarter GDP growth of 0.3%, the same as at the tail-end of 2014, as business activity expanded in all of the bloc's four biggest economies for the first time since last April. The euro has fallen nearly 8% since the start of the year against the dollar, helping drive Markit's final February Composite Purchasing Managers' Index (PMI) up to a seven-month high of 53.3. Although weaker than a preliminary estimate of 53.5 it comfortably beat January's 52.6 and achieved its 20th month above the 50 level that separates growth from contraction. A PMI covering the euro zone's dominant service industry rose one point from January to 53.7 but was similarly lower than a flash reading of 53.9. To encourage demand, firms have been cutting prices for almost three years - the output price index again came in sub-50 at 47.9. (Reuters)

· British Services Growth Eases but Hiring Booms in February. Growth in Britain's dominant services sector eased back in February but firms hired staff at the second-fastest rate on record, wages rose and new orders increased, a further sign that the economy has got off to a strong start in 2015. The Markit/CIPS UK Services Purchasing Managers' Index (PMI) slipped more than expected to 56.7, from 57.2 in January. But survey compiler Markit said wages - a crucial issue for the Bank of England as it tries to decide when interest rates should rise - were a "primary driver" behind an increase in costs in the sectornd will come under increasing pressure to tighten policy later this year," said Chris Williamson, chief economist at Markit. Following upbeat PMIs for manufacturing and construction earlier this week, Markit said the surveys signalled economic growth of 0.6% in the first three months of 2015, quarter-on-quarter, speeding up from 0.5% at the end of last year. (Reuters)

Currencies

· Euro Thumped as ECB Looms, Aussie Data in Focus. The euro wallowed at its lowest in over 11 years against the greenback early on Thursday, having suffered a big setback as investors waited for the European Central Bank to announce more details of its massive bond-buying program. The eurozone common currency fell as far as $1.1061, a low not seen since September 2003, surpassing the previous trough of $1.1098 set on Jan. 26. It was last at $1.1084. It also slid to a one-month low of 132.40 yen and came within a whisker of a seven-year trough against sterling. The euro last traded at 72.56 pence, not far off the low near 72.35 set earlier in the week. Investors have already driven yields across Europe to record lows in anticipation of the ECB's largesse, greatly widening the yield advantage of the U.S. dollar in the process. Renewed weakness in the euro helped drive the dollar index to a fresh 11-year high of 96.059. The dollar, however, was little changed on the yen at 119.68 yen. It also failed to gain much traction against the Australian dollar, which held its ground above 78 U.S. cents. (Reuters)

Commodities

· U.S. Oil Rises, Brent Pares Losses on Iran News. U.S. oil futures rose on Wednesday and benchmark Brent pared losses as OPEC member Iran stressed that it opposed a timeline for a freeze on nuclear activities, news that helped crude rebound from an early slide tied to swelling U.S. stockpiles. Comments from Saudi Arabia's oil minister that prices ought to stabilize from the selloff of recent months also helped put a floor under prices, dealers said. Some drew encouragement from the Federal Reserve's Beige Book report anticipating cuts in capital expenditure for oil and gas producers in certain U.S. districts. Lower oil exploration budgets could mean less supply in the future. U.S. crude settled up $1.01 at $51.53 a barrel, reversing a near $1 drop from earlier in the day. Brent finished down 47 cents at $60.55 a barrel, after falling more than $1.50 earlier. (Reuters)

· Gold Retreats on Strong Dollar After U.S. Data. Gold prices fell on Wednesday, heading for a third day of losses, as the dollar extended gains versus the euro after U.S. economic data. Spot gold, higher initially, fell 0.3% to $1,199.80 an ounce by 2:47 p.m. EST (1947 GMT). The metal had fallen to a one-week low of $1,194.90 on Tuesday, dented by an 11-year high of the dollar and expectations of a U.S. interest rate hike. Spot silver fell 0.4% to $16.23 an ounce, while palladium was down 0.2% at $825 an ounce and platinum edged up 0.2% to $1,190 an ounce. (Reuters)