China cuts rates again

•     China cuts rates again

•      People’s Bank of China (PBoC) unexpectedly cut the benchmark one-year lending and deposit rates by 25 bps

•      The move followed the reduction in banks reserve requirement ratio in February and is the second rate cut in less than 4 months in an attempt to spur growth

•      China’s parliament will hold its annual meeting in few days. The rate cut suggests that the 2015 growth target may be lowered to 7% from the current 7.5%. AUD and NZD opened with a gap up, but gave back all the gains and fell even more in the following hours

•     Today:

•      Eurozone, Germany, France and UK: Manufacturing PMI for February

•      Eurozone: Estimate CPI for February

•      US: final Markit manufacturing PMI and the ISM manufacturing index both for February; Personal income and spending for January; annual PCE deflator and core PCE

•     This week:

•      Tuesday: Reserve Bank of Australia monetary policy decision

•      Wednesday:Bank of Canada policy meeting, US ADP report

•      Thursday: ECB and Bank of England policy meetings

•      Friday: US non-farm payrolls for February