Report of an unexpected fall in consumer confidence in March halted the Dow Jones from registering its 11th consecutive gain, causing it to fall 0.2% on Friday while gaining 0.8% for the week. The S&P fell 0.2% and posted +0.6% week-on-week to 1,560.7, a whisker away from its record closing high of 1,565.15 back in October 2007. Bloomberg data also showed that Friday registered the largest volume traded for 2013.
 
Positive US data, unexpected confidence slump
Data from US Commerce Department showed that Americans are spending at the fastest pace in 5 months in February, pushing up retail sales by 1.1% month-on-month, whereas industrial production rose 0.7% in February, exceeding Bloomberg’s survey.

Sales at US retailers rose by twice as much as forecast with jobless claims unexpectedly falling in the week ended March 9.

However, Michigan preliminary sentiment index for March unexpectedly fell to 71.8 from 77.6 in February, underperforming the median estimate of 78 by 67 economists surveyed by Bloomberg.

Singapore’s home sales plunged 65% in February, retail sales down
The Urban Redevelopment Authority (URA) reported on Friday that new private home sales dived 65% month-on-month to 708 from 2,013, the lowest number since December 2011. The fall may be attributed to Singapore implementing its seventh cooling measures as well as February being a short month due to Chinese New Year.

Data released by the Department of Statistics showed that retail sales fell 2% in January 2013. Excluding motor vehicles, retail sales declined 4.9%.

10 billion euro bailout for Cyprus
Reuters reported on Saturday that the euro zone has struck a deal for Cyrus’ 10 billion euros bailout. However, depositors in Cyprus’ banks have to forfeit some money to stave off bankruptcy. Cyprus is now the fifth country after Greece, Ireland, Portugal and Spain to seek financial assistance.

Key Macro Data this week
Mon 18 Mar: SG Non-oil Domestic Exports
Tues 19 Mar: China February Property Prices; US Housing Starts
Thurs 21 Mar: HK CPI Composite Index; China HSBC Flash Manufacturing PMI; US Initial Jobless Claims, Existing Home Sales, FOMC Rate Decision

Source: Macquarie Research - 18 Mar 2013