US government slashes estimate for Q1 economic growth - Nirmal Bang

The US govt slashed its estimate for Q1 economic growth on Wed, offering a cautionary note on the recovery as the Fed Reserve ponders curtailing its massive monetary stimulus. GDP expanded at a 1.8% annual rate in the Q1. Economy was previously reported to have grown at a 2.4% pace after a gain of just 0.4% in the final 3 months of last year.

ECB policy makers including President Mario said they'll maintain a loose monetary stance for as long as needed, while urging euro area governments to cut their deficits and boost investment. "We have an open mind about all other possible instruments that we may consider proper to adopt." An exit is "very distant," he said at a press conference.

The cost of locking in China's interest rates slid for a fourth day, the longest run of declines since Feb, and money-market rates fell after the central bank pledged to ease the worst cash crunch in a decade. The People's Bank of China has provided financing to some financial institutions to stabilize interbank lending rates and will use short-term liquidity operations and existing loan-facility tools to ensure steady markets. It also called on commercial banks to improve their cash management.

Source : Equity Bulls

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