Overseas Headlines – January 31, 2023

January 31, 2023

United States:

Fed Points Toward a Pause in May Once Hikes Have Time to Sink In

Federal Reserve officials are on track to consider pausing interest rate hikes following their March meeting if more evidence of cooling inflation rolls in.

That’s based on a timeline sketched out by one of the Fed’s most closely watched hawks, Governor Christopher Waller, who was an early advocate of the Fed’s front-loading rate-hike strategy last year.

https://www.bloomberg.com/news/articles/2023-01-31/fed-points-toward-a-pause-in-may-once-hikes-have-time-to-sink-in

Europe:

Euro Zone May Dodge Recession After Surprise Growth

The euro area is on course to avoid a recession after unexpectedly growing at the end of 2022, despite double-digit inflation and Russia’s invasion of Ukraine.

Gross domestic product edged up by 0.1% in the final quarter, Eurostat said Tuesday, defying economist estimates for a contraction of 0.1%. While German and Italian output shrank, France and Spain recorded expansion. There was also stronger-than-anticipated data on Monday from Ireland.

https://www.bloomberg.com/news/articles/2023-01-31/european-economies-french-gdp-boost-eases-recession-fears

Asia:

China’s Economic Activity Rebounds Sharply After Reopening

China’s manufacturing and services expanded for the first time in four months in January as the reopening from Covid Zero continued and the Lunar New Year holiday spurred travel and spending.

The manufacturing purchasing managers’ index rose to 50.1 from 47 in December, matching economists’ estimates, the National Bureau of Statistics said Tuesday. The non-manufacturing gauge — which measures activity in both the services and construction sectors — increased to 54.4 from 41.6, topping expectations for 52 in a Bloomberg survey of economists.

https://www.bloomberg.com/news/articles/2023-01-31/china-s-economic-activity-rebounds-sharply-after-reopening

 

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2023-01-31T09:00:33-05:00