Data event pulse: PBoC cut RRR, key UK data mixed - ANZ

Analysts at ANZ offered a recap of the key data from overnight and noting the recent RRR cut from the PBoC.

Key Quotes:

US mixed: Housing starts bounced 1.9% in March from a positively revised 3.3% fall in February. Permits were stronger than expected but didn’t offset January’s drop. In light of poor weather, the data is positive. Industrial production rose 0.5% in March and manufacturing output and capacity utilisation inched higher.

FED speak: Williams remained in the hawkish camp; Hawker held back.

Europe data mixed: UK wage data was mixed but consistent with a gradual increase. Data confirmed the labour market is tight with the unemployment rate at just 4.2% and the participation rate at a record high of 75.4%. The BoE is expected to raise rates 25bp next month. In Germany, the ZEW current conditions index eased slightly but expectations fell sharply.

RRR cut: The PBoC cut the reserve requirement ratio for some banks by 1 percentage point, likely aimed at keeping a lid on corporates’ funding costs. The move is neutral from a quantitative point of view."