How’dy USA

In US economic data, retail sales rose by 0.2% in January (forecast: flat) while sales excluding autos rose by 0.9% (forecast +0.2%). Consumer inflation expectations fell from 2.97% to 2.79% in February. Business inventories rose by 0.6% as expected in December.

US share markets rose on Monday. The key exception was Boeing with shares down 5.3% following Sunday's fatal Ethiopian Airlines crash. Technology stocks led the gains. Shares in Apple rose by 3.5% after a broker upgrade. The Dow Jones index rose by 201 points or 0.8%. The S&P500 index gained 1.5%. And the Nasdaq index rose by 150 points or 2.0%.

US treasuries fell on Monday (yields higher) in response to firmer retail sales data and stronger equities markets. US Treasury auctioned $38 billion in three-year notes on Monday and will sell $24 billion in 10-year notes on Tuesday and will sell $16 billion in 30year bonds on Wednesday. Also, Reuters report that on the corporate debt side, four US investment grade deals were announced on Monday. US 2-year yields rose by 2 points to 2.48% and US 10-year yields rose by 2 points to 2.64%.

Bonjour Europe

European share markets rose on Monday for the first time in four sessions. Banks rose by 2.1%, assisted in part by news of a potential merger between Deutsche Bank and Commerzbank. Shares in Commerzbank rose 7.15% and Deutsche Bank rose by 5%. Shares in Boeing fell by over 7% in New York trade after some airlines grounded the company's new 737 MAX 8 passenger jet following Sunday's fatal Ethiopian Airlines crash. Shares in rival Airbus rose by 1.3%. The pan-European STOXX600 index rose by 0.8%. The German Dax also rose by 0.8% and the UK FTSE lifted by 0.4%. In London trade, shares of Rio Tinto rose by 0.7% while BHP rose by 1.0%.

Hello, world!

Major currencies were mixed against the US dollar in US and European trade compared with the Asia close. The Euro fell from US$1.1255 to US$1.1220 and was near US$1.1245 in late US trade. The Aussie dollar rose from lows near US70.35 cents to highs near US70.75 cents and was near US70.70 cents in late US trade. And the Japanese yen held between 111.00 yen per US dollar and JPY111.30 and was near JPY111.20 in late US trade.

Global oil prices rose by 1.3% on Monday. Saudi Energy Minister Khalid al-Falih said on Sunday that that an end to OPEC-led supply cuts was unlikely before June. But Reuters reported the International Energy Agency as saying that crude output in the United States will rise nearly 2.8 million bpd to 13.7 million bpd in 2024 from about 11 million bpd in 2018. Brent crude rose by US84 cents or 1.3% to US$66.58 a barrel and the US Nymex price rose by US72 cents or 1.3% to US$56.79 a barrel.

Base metal prices were generally down by between 0.8-1.5% on Monday. But while tin, aluminium and nickel fell 1.5%, zinc rose 2.0% and copper rose 0.2%.

The gold futures price fell by US$8.20 an ounce or 0.6% to $1,291.10 an ounce. The spot gold price was near US$1,293 an ounce in late US trade. Iron ore fell by US$1.85 or 2.2% to US$83.00 a tonne.

G’day Australia

In Australia, the NAB business survey is released with credit and debit card lending, broader lending finance data and consumer confidence survey results. In the US, consumer price data is released with the NFIB business optimism index.