Market WATCh Weekly 3 February 2023

Market WATCh Weekly 3 February 2023

February 3, 2023

Abroad, the FOMC lifted the fed funds rate target range by 25bps, which is a step down from previous increases. The ECB and Bank of England increased their respective policy rates by 50bps this week. Data-wise, US ISM manufacturing PMI remained in contraction in January, while growth in US ADP employment slowed. The quarterly growth rate in US employment cost index in Q4 was the slowest in a year. Chinese PMIs suggested that the services sector returned to expansion in January, but manufacturing remained near stagnant. In Australia, retail sales dropped more than expected in December. New home loans continued to fall in December, while building approvals rose thanks to high-rise activity. House prices declined by another 1.1% in December.

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