Global Event Update 19.03.14 US markets rose for the second day yesterday, after upbeat data on the US economy and after Vladimir Putin said Russia was not looking to divide Ukraine. The Department of Commerce reported housing starts in February were down 0.2% from January and off 6.4% from the year-ago month, while a rebound in building permits offered hope for the housing market emerging from a soft patch. Addressing the Russian parliament, Putin said Russia was not looking to take control of more of Ukraine after approving a plan to make Crimea a part of Russia after a referendum viewed as illegal by the United States and the European Union, which imposed sanctions on officials accused of taking part in Russias military takeover of the Black Sea peninsula. The Federal Reserve’s policy-setting session ends today, with the central bank expected to continue tapering asset purchases. European markets also closed higher for a second consecutive day yesterday after Russian President Vladimir Putin calmed markets by saying there was no need to divide Ukraine further. However, there are still concerns over future developments in Crimea. Ukraines prime minister Arseniy Yatsenyuk said that the conflict between Russia and Ukraine over Crimea was now entering a military stage, according to the Interfax news agency. In Germany, the constitutional court ruled that the European bailout fund, the European Stability Mechanism, was in line with the countrys constitution. The ruling removes uncertainty surrounding the new defense mechanism for the euro zone. Thus, the ECB meeting in early April will now be watched for any further stimulus measures. Asian markets are mostly lower today due to caution over the Federal Reserves policy meeting and the health of Chinas property market. Fears over a crisis in Chinas real-estate market dominated after property developer Zhejiang Xingrun reportedly defaulted on its debt on Tuesday, less than two weeks after the mainlands first onshore corporate bond default. Brent crude is at $106.6 / barrel. ibis...
Posted on: Wed, 19 Mar 2014 05:44:00 +0000
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