Global Economic Prospects 2015

The global economy is still struggling to gain momentum. Read more ...

Development Prospects

Providing information, analysis, and advice on global trends in the world economy.  Find out more ...

Global Economic Monitor

Now free. Daily and monthly updates on global economic developments and relevant topical issues. Find out more ...

Syndicate content

Prospects Daily: U.S. government bonds fall for the first time in a week, U.S. pending home sales rebound after falling for 8 months, Turkey’s consumer confidence at two-year high

Global Macroeconomics Team's picture
Financial Markets
U.S. Treasuries retreated for the first time in 6 days as upbeat housing data in March and prospect of further scale-back in Fed’s stimulus damped demand for safe-haven debt. Benchmark 10-year yields climbed 4 basis points (bps) to 2.70% in morning trade, the first increase in a week, while the 30-year bond yields rose to 3.48% after reaching a 9-month low of 3.42% last Friday. The current 10-year yield is more than 100 bps higher from a record low of 1.379% reached in July 2012, but is still standing below its decade average of 3.45%.
Chinese stocks lost the most in seven weeks amid reports of weak corporate earnings and growing concerns over the new IPOs. The benchmark Shanghai Composite Index slid for a fourth day, losing 1.6% at the closing, which is the biggest single-day drop since March 10. The Shanghai stock gauge tumbled 2.9% last week, its biggest weekly slid since the week ending January 10 as manufacturing gauge pointed to slowing economic growth and concerns grew a new round of IPOs may drain market liquidity.
High Income Economies
Rebounding from a severe winter, U.S. pending home sales index surged up 3.4% to 97.4 in March after edging down by 0.5% to a revised 94.2 in February.  A pending home sale is one in which a contract was signed but not yet closed.  With the larger-than-expected increase, the index rose for the first time in nine months, although it was still down by 7.9% (y/y) compared to March 2013.
The composite leading index for Taiwan, China rose 0.22% (m/m) to 104.49 in March, after climbing 0.24% in February.  The coincident index also rose modestly by 0.08% from February, while the lagging index declined at a slower pace of 0.15% in March, after a 0.24% fall in February.
Developing Economies
Europe and Central Asia  
Turkey’s consumer confidence index rose for the second consecutive month to a two-year high 78.5 in April, up from 72.7 in March, but remained below the score of 100 which indicates a negative outlook. Contributing to the improvement in the overall index, the general economic situation expectation index, which pertains to the upcoming 12 months, rose to 107 from 95.9 in March; and the household financial expectation index, which provides a measure of household financial outlook, rose to 94.9 from 91.4; while the unemployment expectation index rose to 85.4 from 79.4 in March.
Latin America and the Caribbean  
Mexico’s monthly trade balance posted a surplus of US$1.03bn in March, up from US$0.97bn in February. However, Mexico's trade surplus narrowed 41.4% in March compared with the previous year as imports accelerated.  Year-on-year, exports grew 4.5% spurred by non-oil sales, which increased 6.9% (y/y), while oil shipments fell 11.1% (y/y). Meanwhile imports rose 7.2% (y/y), driven by a 9.1% (y/y) surge in non-oil purchases. In the three months ended in March, exports rose 2.9% (y/y) while imports increased 3.0% (y/y), resulting in a 16.7% (y/y) increase in the trade deficit.

Add new comment