GLOBAL MARKETS UPDATE 15/4

 China's economy    grew a more than estimated 9.7% in the first quarter and inflation accelerated in March to the fastest pace since 2008 as consumer prices rose by 5.4% YoY.  Fitch rating cut the outlook for China’s local-currency sovereign debt rating to “negative” from “stable” this week, citing concerns about bank asset quality.

Greece will announce new measures today to meet its deficit-reduction goals after the country’s bond yields hit new highs amid talk it may restructure its debt.  The government’s medium term-fiscal policy plan will detail more than EUR 22 bn of deficit-reduction measures through 2014, most of which would be in spending cuts.

  Confidence among US consumers rose for a third straight week, indicating an improving job market is shoring up Americans’ attitudes toward their finances and the economy. The Bloomberg Consumer Comfort Index climbed to minus 43 in the period to April 10, the best showing since the end of February, following a minus 44.5 reading the prior week.

  The February Job Openings and Labor Turnover Survey (JOLTS) in US showed that the job openings rate increased to 2.3% from 2.1% in January. The increase in the headline job openings rate was driven primarily by the private sector, with much of the improvement concentrated in professional and business services.

  Bank of Japan Governor Masaaki Shirakawa said the Japanese economy will expand next quarter as it recovers from the nation’s worst earthquake.

  Overnight in US most stocks advanced, erasing an early decline, as the House approved a spending bill that will avert a government shutdown and on investors’ optimism about higher than estimated corporate earnings. The benchmark gauge yesterday halted a four-day slump, its longest since November, as a Fed’s Beige Book fueled optimism about the economy, especially in manufacturing.

   Today, Asian stocks fell, after China reported that inflation increased faster than estimated, increasing speculation that the government will need to do more to contain growth. Indian equity benchmarks were lower in the opening trade tracking Asian peers. Except banks and consumer durables, all the sectors were in red, with declines led by IT stocks.