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Vindicating the Fed

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  • US data seems to be confirming that the slow down at the start of this year owed much if not everything to weather effects, with industrial production bouncing back better than expected. The Fed's scaling back of quantitative policy is vindicated by the numbers.
  • Sanctions against Russia officials (and some Ukrainian former officials) over the Crimean vote remain at the milder end of market expectations. An escalation is likely if Russia moved to incorporate the Crimea. Russia's response to sanctions is also awaited..
  • Data is overshadowed by anticipation of the Federal Reserve decision from the US, due tomorrow. US consumer prices are a limited distraction in the meantime. Germany releases the ZEW survey of business sentiment.
  • China released house price data showing a degree of moderation (although house price to GDP ratios are rising in most major cities). A Chinese real estate developer became the second corporate bankruptcy of modern times in China.
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