Asian shares struggled for traction as some investors locked in profits from the markets' recent rally. The yen strengthened slightly and the Nikkei fell 0.4%. Australia's S&P/ASX 200 index slipped 0.2% due to weakness in financial shares, while South Korea's Kospi Composite index added 0.1%. The Hang Seng index was down 0.4% and the Shanghai Composite index fell off 0.1%. (Financial Times)
UK stagflation spectre looms: "Inflation expectations, as measured by the difference between nominal and inflation-linked bond yields, ticked up to near 3.3 per cent on Tuesday, levels not seen since September 2008." Separately, the National Institute of Economic and Social Research said the economy continued to flatline in the first two months of 2013. (Financial Times)
FAA agrees Boeing 787 fix: "Boeing's troubled 787 Dreamliner could return to commercial service within weeks after the main US aviation regulator approved the commercial jet maker's proposals to upgrade the aircraft's batteries, giving the go-ahead for test flights." (Financial Times)
Cathay Pacific profits beat expectations "Asia's biggest international carrier, reported annual profit that beat analyst estimates after higher passenger numbers helped mask a drop in cargo traffic." (Bloomberg)
Stanford receivers reach Antigua deal: Under the agreement, which requires court approval in Canada, Switzerland and the US, "almost 90 per cent" of $300m in disputes frozen assets held in those jurisdictions will be distributed to victims, the receivers said in a joint statement. (Financial Times)
Food producer moves noodle factory from Guangzhou to Leeds. "We can produce for roughly the same cost today in Yorkshire as we are out of China," says Symington's manager. (Financial Times)
DoJ said to be investigating BHP over Beijing Olympics: The US Justice Department told Australian Fairfax newspapers, in response to an FOI request, it was conducting "law enforcement proceedings" involving BHP, which supplied the materials for gold, silver and bronze medals used in Beijing. (Reuters)
COMMENT AND CURIOS:
- Martin Wolf: Cameron is wrong about fiscal policy flexibility. (Financial Times)
- Will Suntech be a pioneering Chinese default? (Bloomberg)
- Mexico's new president challenges Slim and other billionaires. (Financial Times)
- John Plender: The dollar is the only serious reserve currency. (Financial Times)
- Almost 6,000 dead pigs pulled from Shanghai river. (Wall Street Journal)
- Samsung makes big Galaxy 4 launch tomorrow. (Bloomberg)
OVERNIGHT MARKETS: DOWN
Asian markets
Nikkei 225 down -58.02 (-0.47%) at 12,257
Topix down -2.64 (-0.25%) at 1,033
Hang Seng down -149.89 (-0.65%) at 22,741
US markets
S&P 500 down -3.74 (-0.24%) at 1,552
DJIA up +2.77 (+0.02%) at 14,450
Nasdaq down -10.55 (-0.32%) at 3,242
European markets
Eurofirst 300 down -0.62 (-0.05%) at 1,194
FTSE100 up +6.99 (+0.11%) at 6,511
CAC 40 up +3.70 (+0.10%) at 3,840
Dax down -18.17 (-0.23%) at 7,966
Currencies
€/$ 1.30 (1.30)
$/¥ 95.74 (96.06)
£/$ 1.49 (1.49)
Commodities ($)
Brent Crude (ICE) down -0.23 at 109.42
Light Crude (Nymex) up +0.18 at 92.72
100 Oz Gold (Comex) up +0.30 at 1,592
Copper (Comex) up +1.20 at 355.00
10-year government bond yields (%)
US 2.02%
UK 1.98%
Germany 1.48%
CDS (closing levels)
Markit iTraxx SovX Western Europe -1.49bps at 97.07bp
Markit iTraxx Europe +1.96bps at 106.28bp
Markit iTraxx Xover +6.63bps at 410.69bp
Markit CDX IG +0.28bps at 79.78bp
Sources: FT, Bloomberg, Markit
