There were no data releases from the UK on Thursday. EU leaders go into a make-or-break summit on Thursday facing difficult compromises to keep Britain in the bloc and wrangling with Europe’s worst migrant crisis since World War II. Prime Minister David Cameron’s demand for key reforms in return for Britain’s continued membership has exposed a rift over whether the EU’s future is to move ever closer together or to ease ties, becoming a looser group of distinct sovereign nations. Fail to get a deal and Cameron has said anything is possible, including Britain becoming the first country to leave the 28-nation bloc after an in-or-out referendum that could come as early as this summer. Cameron has staked his political survival on securing the reform deal and winning the plebiscite in hopes of ending a political feud over Britain’s place in the EU that has plagued his Conservative Party for a generation.
In the US session
Unemployment Claims and Philly Fed Manufacturing Index figures were published. In the week ending February 13, the advance figure for seasonally adjusted
initial claims was 262,000, a decrease of 7,000 from the previous week's unrevised level of 269,000. Analysts were expecting increase to 275,000. The 4-week moving average was 273,250, a decrease of 8,000 from the previous week's unrevised average of 281,250.
Separate report, on Philly Fed Manufacturing Index for current activity, showed that index increased from a reading of -3.5 in January to -2.8 in February and has now been negative for six consecutive months. The index for current new orders remained negative and edged down 4 points, to -5.3. Firms reported an increase in shipments; the shipments index remained positive for the second consecutive month but fell 7 points from January. Firms reported continued declines in inventories, and the inventories index remained negative. Firms’ backlogs of unfilled orders were in decline again this month, and delivery times were shorter, according to the responding firms.
From the UK, tomorrow, Retail Sales and Public Sector Net Borrowing data will be released. Retail Sales are expected to rise by 0.8%, while Public Sector should show budget surplus of 13.9 billion Pounds. In the US session CPI figures will be published. Analysts are forecasting 0.1% decrease.
Figures to watch:
Retail Sales (Friday 10:30)
Public Sector Net Borrowing (Friday 10:30)
CPI (Friday 14:30)
