In This Article:
The Stats
It was a quieter week on the economic calendar for the week ending 11th March.
A total of 50 stats were monitored, following 79 stats in the week prior.
Of the 50 stats, 24 came in ahead of forecasts, with 18 economic indicators coming up short of forecast. 8 stats were in line with forecasts in the week.
Looking at the numbers, 24 of the stats reflected an upward trend from previous figures. Of the remaining 26 stats, 25 reflected a deterioration from previous numbers.
While the stats drew interest, geopolitics remained the key driver. Russia’s continued invasion of Ukraine weighed on riskier assets, while hopes of talks eased some market angst.
Out of the U.S
Inflation and jobless claims were the key stats in the week.
In the week ending 3rd March, initial jobless claims increased from 216k to 227k. More significantly, the annual rate of inflation accelerated from 7.5% to 7.9%. The core annual rate of inflation picked up from 6.0% to 6.4%, casting yet more FED monetary policy uncertainty on the markets.
In the week ending 4th March, the Dollar Spot Index rose by 0.48% to end the week at 99.124. In the week prior, the Index jumped by 2.10% to 98.648.
Out of the UK
Industrial and manufacturing production, GDP, and trade data were in focus. The stats were mixed for the Pound.
Industrial and manufacturing production increased by 0.7% and by 0.8%, respectively, in January. The economy grew by 0.8%, reversing a 0.2% contraction from the previous month.
Trade data disappointed, however. The UK’s trade deficit widened from £12.53bn to £26.50bn, in January.
In the week, the Pound slid by 1.46% to end the week at $1.3037. In the week prior, the Pound fell by 1.33% to $1.3230.
The FTSE100 ended the week up 2.41%, partially reversing a 6.71% slide from the previous week.
Out of the Eurozone
The German economy was in focus early in the week. Impressive numbers provided little support, however, with the January numbers not capturing the impact of sanctions on the German economy.
In January, factory orders rose by 1.8%, with industrial production up 2.7%. Consumer spending was also on the rise, despite the continued rise in consumer prices. Retail sales increased by 2.7% in January.
Other stats, including Eurozone GDP and member state inflation figures, drew even less attention, with the ECB in action.
In line with market expectations, the ECB left interest rates unchanged on Thursday. The ECB did announce that it would wind down asset purchases faster than planned.
The more hawkish stance came despite ECB President Lagarde conceding that the Russian invasion of Ukraine will have a material impact on economic activity and inflation.