Asian stocks rose as inflation in China eased more than forecast, buoying commodity producers. The Nikkei was 0.1% higher, the ASX rose 1.1% and the MSCI Asia Pacific was up 0.3%. (Bloomberg)
Chinese inflation slows in March: "Consumer prices rose 2.1% in March from a year earlier, below expectations and down from a ten-month high of 3.2% in February when China celebrated its Lunar New Year. Food price inflation, which had surged to 6% year on year in February, fell back to a pace of 2.7%. Looking past the seasonal rise and fall in prices caused by the holiday, Chinese inflation has remained mild this year. The average increase in consumer prices in the first quarter was 2.4 per cent, up only a little from the final quarter of 2012. Analysts said the subdued inflation was a reflection of how the Chinese economic recovery has been steady but unspectacular." (Financial Times)
Bernanke says stress tests are great: ""The resilience of the U.S. banking system has greatly improved since [2009], and the more intensive use and greater sophistication of supervisory stress testing, as well as supervisors' increased emphasis on the effectiveness of banks' own capital planning processes, deserve some credit for that improvement." (Reuters)(Speech text)
North Koreans didn't show up for work today at Kaesong industrial park near the border, effectively shutting down the factory complex operated with South Korea for the first time since shipments began in 2004. Pyongyang's decision to halt work there coincides with speculation it plans to carry out a missile launch, or even another nuclear test. (Reuters)
GE agreed to buy Lufkin Industries, an oil and gas pumpmaker, for $3.3bn. The cash deal values Lufkin at 38% above its closing price on Friday. (Financial Times)
Ron Johnson is out at JCPenney. Mike Ullman will rejoin the company as chief executive two years after Johnson, a veteran of Target and Apple, ousted him and came in to overhaul the retailer's strategy. Bill Ackman, previously one of Johnson's strongest supporters, last week described the overhaul's execution as "something very close to a disaster" (CNBC).
COMMENT AND CURIOUS:
Margaret Thatcher obits (mostly from The Closer, our US end of day email)
WSJ obit
Telegraph obit
NYT obit
The pragmatic politician who defended free markets – Martin Wolf
Did Thatcher turn Britain around? Paul Krugman
Thatcher's relentless focus to improve UK economy – Chris Giles
Thatcher, Liberator – Andrew Sullivan
How Thatcher saved Britain - Clive Crook
- On UK banks' leverage ratios. (Financial Times)
- Climate change likely to raise risk of turbulence on transatlantic flights by 40% - 170% by 2050. (Financial Times)
- The rotation into stocks is about sectors, not asset classes. (Financial Times)
- Nick Leeson is back... renegotiating debt in Ireland. (Bloomberg)
OVERNIGHT MARKETS: UP
Asian markets
Nikkei 225 up +6.44 (+0.05%) at 13,199
Topix down -5.64 (-0.51%) at 1,096
Hang Seng up +200.04 (+0.92%) at 21,918
US markets
S&P 500 up +9.79 (+0.63%) at 1,563
DJIA up +48.23 (+0.33%) at 14,613
Nasdaq up +18.39 (+0.57%) at 3,222
European markets
Eurofirst 300 up +2.58 (+0.22%) at 1,165
FTSE100 up +27.16 (+0.43%) at 6,277
CAC 40 up +3.30 (+0.09%) at 3,667
Dax up +3.89 (+0.05%) at 7,663
Currencies
€/$ 1.30 (1.30)
$/¥ 99.26 (99.35)
£/$ 1.53 (1.53)
Commodities ($)
Brent Crude (ICE) up +0.52 at 105.18
Light Crude (Nymex) up +0.25 at 93.61
100 Oz Gold (Comex) up +1.90 at 1,574
Copper (Comex) unchanged 0.00 at 336.80
10-year government bond yields (%)
US 1.74%
UK 1.71%
Germany 1.25%
CDS (closing levels)
Markit iTraxx SovX Western Europe -1.6bps at 101.37bp
Markit iTraxx Europe -2.1bps at 116.57bp
Markit iTraxx Xover -1.42bps at 476.95bp
Markit CDX IG -1.49bps at 85.45bp
Sources: FT, Bloomberg, Markit
