Asian stocks were lower amid apprehension about a Bank of Japan policy meeting that ends today, and following the US ADP private sector payroll survey missing expectations for March. The Nikkei fell 1.7%, the Kospi was down 1.5% and the MSCI Asia Pacific was 1% lower. (Bloomberg)
Bundesbank launches probe into Deutsche Bank claims: Investigators from Germany's central bank are scheduled to fly to New York next week as part of an inquiry into allegations that misvaluing credit derivatives allowed Deutsche to hide up to $12bn in losses, helping it avoid a government bailout. Three informants told US regulators the bank avoided recording mark-to-market losses on leveraged super senior trades in 2007-2009.(Financial Times)
All eyes will be on the new BoJ governor Haruhiko Kuroda as he wraps up his first monetary policy board meeting today. Expectations are extremely high and at a minimum, markets expect an acceleration of the pace and scale of the bank's asset purchases. (Financial Times)
Dovish Fed member hints at summer slowing of QE3: "John Williams, president of the San Francisco Fed, led the push for more asset purchases in the summer of 2012 and his willingness to consider slowing the rate of buying suggests the central bank is nearing its goal. "Assuming my economic forecast holds true, I expect we will meet the test for substantial improvement in the outlook for the labour market by this summer," he said in a speech in Los Angeles on Wednesday." (Financial Times)
BoE expected to hold today: Most economists surveyed by Reuters don't expect the Bank of England to add to its bond buying programme at today's MPC meeting, despite a tweak to the central bank's mandate two weeks ago. (Reuters)
"Goldman Sachs and JPMorgan Chase are reaping the rewards as rivals suffer a decline in investment banking and capital markets activity, according to Goldman president Gary Cohn." (Financial Times)
Mega offshore data dump: Secret records totalling 2.5m files, with information on 120,000 offshore companies and trusts registered in the British Virgin Islands as well as Singapore, Hong Kong and the Cook Islands. (International Consortium for Investigative Journalism)(The Guardian)
RBS shareholders group sues for up to 4bn: The RBoS Shareholders Action Group has issued proceedings against RBS, Fred Goodwin, Tom McKillop, Johnny Cameron and Guy Whittaker, in the chancery division of Britain's High Court to recover billions of pounds lost on the value of their shares in the run up to the bank's 2008 taxpayer rescue. RBS and its law firm Herbert Smith declined to comment. None of the four directors could immediately be reached for comment. It is the second lawsuit filed against the bank in two weeks. (Reuters)
COMMENT AND CURIOS:
- Corporate bond trading goes electronic, slowly. (Financial Times)
- China's export data doesn't add up. (Wall Street Journal)
- Ezra Klein: Washington could, actually, decide to break up the big banks. (Bloomberg)
- China, graveyard for shipbuilders. (Bloomberg)
- A shotgun as downpayment on a car? Blame the Fed... (Reuters)
- Obama cuts own salary in solidary with government employees. (Reuters)
OVERNIGHT MARKETS: DOWN
Asian markets
Nikkei 225 down -193.84 (-1.57%) at 12,168
Topix down -2.54 (-0.25%) at 1,008
Hang Seng down -30.33 (-0.14%) at 22,337
US markets
S&P 500 down -16.56 (-1.05%) at 1,554
DJIA down -111.66 (-0.76%) at 14,550
Nasdaq down -36.26 (-1.11%) at 3,219
European markets
Eurofirst 300 down -10.49 (-0.87%) at 1,193
FTSE100 down -70.38 (-1.08%) at 6,420
CAC 40 down -50.41 (-1.32%) at 3,755
Dax down -69.12 (-0.87%) at 7,875
Currencies
€/$ 1.28 (1.28)
$/¥ 92.89 (92.93)
£/$ 1.51 (1.51)
Commodities ($)
Brent Crude (ICE) up +0.37 at 107.48
Light Crude (Nymex) up +0.07 at 94.52
100 Oz Gold (Comex) down -8.50 at 1,544
Copper (Comex) down -2.50 at 330.05
10-year government bond yields (%)
US 1.81%
UK 1.75%
Germany 1.27%
CDS (closing levels)
Markit iTraxx SovX Western Europe -0.94bps at 103.38bp
Markit iTraxx Europe -0.05bps at 120.73bp
Markit iTraxx Xover +5.11bps at 475.15bp
Markit CDX IG +1.46bps at 89.25bp
Sources: FT, Bloomberg, Markit
