Daily Market Report - 10/03/2016


The pound held on to small gains against the dollar yesterday after data showing that U.K. industrial output rebounded in January after a steep drop in December. Industrial production rose 0.3% in January after dropping 1.1% in December. It was expected to see an increase of 0.5%. Industrial output was up 0.2% in January from a year earlier, which was in line with forecasts. Manufacturing output increased 0.7% after a 0.3% dip in December. This was the first increase for four months and ahead of forecasts for a 0.2% rise.
Norway's $830 billion sovereign wealth fund, the world's biggest, was the latest to weigh into the EU debate, saying it would probably increase its investment in Britain whatever the result of the June 23 referendum.
Buckingham Palace dominated domestic media by saying it had made an official complaint to Britain's press watchdog over a report in tabloid newspaper The Sun headlined "Queen backs Brexit". The palace said the monarch remains politically neutral.


US MBA mortgage application volumes grew 0.20% in the last week, according to data from the Mortgage Bankers Association, versus the previous week's 4.8% decline. Seasonally adjusted total mortgage application volumes were also 20% higher than the same week one year ago, the MBA said.
These new home figures have diverged from applications to refinance existing homes, which fell 2% for the week on a seasonally adjusted basis, but were up 13% higher year on year. The MBA said purchase applications rose 4% to the highest level since January and were 30% higher than last year.

Key Announcements

12:45 – EUR: ECB Interest Rate Decision Expected to stay the same at 0.05%
12:45 – EUR: ECB Deposit Rate Decision Expected to fall from -0.3% to -0.4%
13:30 – EUR: ECB Monetary Policy Statement ad press conference