US: Flash composite PMI rises to eight-month high; EUR: Nine-month high expansion rates ease recession fears; ZAR: Average SA headline inflation is expected to slow to 5.8% this year, from 6.9% last year; GBP: Household confidence at its highest in 41 years; JPY: BOJ under immense pressure as inflation hits 41-year high; AUS: Wage growth weaker than expected and causes Aussie dollar to lose ground
USD: US FLASH COMPOSITE PMI RISES TO EIGHT-MONTH HIGH
The nation's PMI composite closed at 50.2, exceeding the estimate of 47.5 and 46.8 in the previous month, as business activity in February surged to the highest level in eight months, indicating subsiding inflation.
The stabilisation of the U.S. private sector is primarily due to the services sector, as manufacturers reported a continued decline in output. There is, however, a slight improvement in supply chain conditions, slightly alleviating the ongoing pressure on prices.
As a result, the USD has gained strength against other major currencies on this past few days with a surge of 0.35% to 104.22.
EUR: EUROZONE ECONOMY JUMPS TO A NINE-MONTH HIGH EXPANSION, EASING RECESSEION FEARS
Despite expectations of a recession, Eurozone business activity grew at a much faster rate than expected this month. This survey implies that the currency union may very well avoid one.
February was the second consecutive month that S&P Global's Flash Eurozone Composite PMI increased to 52.3 from 50.3 in January. This figure was significantly higher than the expected 50.6 and supported itself above the 50 mark for a second time.
Additionally, German manufacturers reported the first decline in average input costs in more than two years. Analysts believe this indicates lower inflation.
ZAR: AVERAGE HEADLINE INFLATION EXPECTED TO SLOW DOWN
The South African Reserve Bank (SARB) and Treasury predict inflationary rates 5.4% by this year's end and 5.3% by mid-next year. The slowdown will be primarily caused by fuel inflation falling below the 6% upper band of the target range, from 34.3% in 2022.
Alongside such declining Saffa fuel inflation, inflation for food and non-alcoholic beverages is expected to remain sticky at 9.2% for the remainder of the year. China's pent-up oil demand is considerably contributing to South Africa's newfound inflation control, and such demand is expected to keep rising for the foreseeable quarter.
GBP: HOUSEHOLD CONFIDENCE MAKES ITS BIGGEST COMEBACK IN ALMOST TWO YEARS
Doughnuts are seen by optimists; holes by pessimists.
As the worst stretch of inflation in four decades eases, British consumers have become more optimistic about their personal finances and the economy.
In the latest GfK Consumer Confidence Index, the headline score rose seven points to -38. Although GfK's client strategy director, Joe Staton, sees this as "welcome news" after nine straight months of scores below -40, despite being 12 points lower than February 2022.
In light of signs that economic expansion is slowing, the Bank of England (BoE), which raised interest rates to 4.0% earlier this month, has also suggested that it may pause its rate-hike cycle.
JPY: BOJ UNDER IMMENSE PRESSURE AS CPI HITS 41-YEAR HIGH
Against expectations, Japan's core consumer inflation hit a fresh 41-year high of 4.2%. Economists speculate that the higher costs of production are now being passed on to consumers.
As commodity imports have become more expensive, the country's inflation has trended at 40-year highs for the fourth consecutive month.
As a result of the exacerbated inflation, the Bank of Japan (BoJ) will have to phase out its massive stimulus programme earlier than expected and tighten monetary policy sooner than planned.
AUS: AUSSIE DOLLAR LOSES GROUND AS WAGE GROWTH WEAKER THAN EXPECTED
Speculators pared their bets on further interest rate hikes after Australian wages grew at a slower-than-expected pace in the final three months of 2022, hinting at the possibility of avoiding a wage-price spiral.
Although the Wage Price Index grew 3.3% from a year earlier, it was below economists' median estimate of 3.5%. Governor Philip Lowe warned in a statement earlier this month that a 'soft landing' is likely.
As a result of these factors, as well as rising global bond yields and growing risk aversion strategies on international asset markets, the antipodean currency has also suffered further losses.
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