Last week was a good week for economic reports as POSITIVE developments
exceeded NEGATIVE developments

Below is a succinct list of last week’s
events:

Positives:

1) German business confidence index and investor economic confidence index showed improvement.

2) Spain sold 12 mo, 18 mo, 2 yr and 10 yr debt successfully, yields hold steady near highest since December.

3) UK retail sales and jobs data both better than expected.

4) US Retail Sales in March broad based and above estimates but core figure ex auto’s, gasoline and building materials were touch light.

5) Housing construction permits rise to most since Sept ’08 led by multi family housing.

6) Refinancing applications rise to 5 week high as mortgage rates drop near lows again.

7) Brazil and India both cut interest rates as focus more on growth than inflation.

8) Shanghai index closes at 5 week high on growing speculation of another Reserve Requirement Ratio cut.

9) Positive for Japanese exporters as yen weakens after Bank of Japan deputy Gov says they will print all the yen it takes to get to 1% inflation.

Negatives:

1) While Spanish yields flat on week, Credit Default Swap rate rises to record high, the Spanish IBEX stock index trades near lowest since Mar ’09, Italian 10 yr rises to just shy of highest since Feb, Italian and French Credit Default Swap at most expensive since Jan

2) Initial Jobless Claims again surprises to upside, 4 week average rises to most since Jan

3) Existing Home Sales, Starts and National Association of Home Builder’s builder survey all below expectations

4) Purchase applications fall to 6 week low

5) NY and Philly manufacturing surveys fall but components mixed

6) Industrial Production flat month over month

7) China says home prices fall in 37 cities in March, up from 27 in Feb

Source:  The Big Picture