Stocks are looking to end the week on track for weekly rise. The Chinse government said it would cut value-added taxes, reinforcing expectation for an eventual pick-up in their economy. Investors are now focused on events that are quickly approaching. Central banks in the U.S., U.K and Brazil will announce their policies. Additionally, EU leaders will meet for discussions, likely with a heavy focus on Brexit and the complications surrounding their withdrawal deadline.
Bond prices are slightly up, and the 10-year treasury is yielding 2.61%. Yesterday, new home sales data was released. New home sales fell 6.9% in January and existing home sales fell 1.2%, indicating that the slowdown has continued into 2019. In general, with economic data being mixed in recent week, the main theme in the data has shown the U.S economy continues to expand but at a slower pace.
U.S industrial production slumped in February. The output fell 0.4%, missing the estimate by 0.1%. Economists are suggesting headwinds from the trade war and slower global growth are hurting manufacturers. It is projected that the U.S economy will slow in each quarter of 2019.