U.S. Leading Indicators Fall More than Forecast

The index of U.S. leading indicators fell more than expected in March, posting a 0.3% month-over-month decline, according to the Conference Board. The consensus had forecast a 0.2% decline. February's decrease was revised up to -0.2% from -0.4%.

Over the last six months, leading indicators have fallen 4.9%. The leading index saw positive contributions from M2 money supply (+0.34%), interest rate spread (+0.26%), and consumer expectations (+0.08%).

Foreign Holdings of Canadian Securities Climb in February

Foreign investors boosted their shares in Canadian investments in February, although by less than in January, Statistics Canada reported on Monday. International investors pumped $6.107 billion in Canadian securities into their portfolios in the month, compared to expectations for a decline to $1.0 billion.

"Increased government borrowing in Canada and in the United States, along with declining global equity prices, maintained cross-border portfolio investment activity," the report read. Meanwhile, the $10.428 billion increase in foreign holdings in January was revised to show a rise of $10.435 billion.

Foreign Travel to Canada Rises in February

Canada saw an increase in the number of inbound travellers in February, led by a rise in visits from Americans, Statistics Canada reported. The number of foreign visitors to Canada rose 2.3% in the month, including a 6.5% increase in same-day car travel from the U.S. and a 1.9% rise in overnight trips from south of the border.

However, visits from countries other than the States fell 4.4%, led by a decline in visits from the UK, which decreased by 5.8%. The UK is Canada's most important overseas market. Visits from Germany, meanwhile, fell 11.4%.

ECB's Nowotny Says Key Rate Close to Lower Limit

The European Central Bank's key policy rate is "close" to its lower limit and should not fall too low, ECB Governing Council member Ewald Nowotny said.

"We are close to the limits of interest rate policy," Nowotny said during an event in Salzburg, Austria on Monday. "My personal feeling is that we shouldn't go below 1 percent with the refinancing rate, but that's a discussion we'll have in May."

Nowotny also said the latest economic forecasts for the euro zone are worse than what the ECB had projected and that "nobody knows" when the economy will reach a bottom.

ECB's Bini Smaghi Says Rates "Very Close" to the Floor

European Central Bank Executive Board member Lorenzo Bini Smaghi said the ECB's key policy rate is "very close" to its minimum level and dismissed fears of deflation within the euro zone. In an interview with the Financial Times Deutschland published on Monday, Bini Smaghi stressed the importance of keeping the key policy rate at a "certain level" without adding unnecessarily to liquidity levels or inflation expectations. "I think we are very close to this level," Bini Smaghi said.

The central banker also said he does not see a risk of deflation and warned against "exaggerated deflation fears" leading to rates being brought down too low.

By Stephen Huebl, This email address is being protected from spam bots, you need Javascript enabled to view it , with contributions from Ainscow, This email address is being protected from spam bots, you need Javascript enabled to view it , Todd Wailoo, This email address is being protected from spam bots, you need Javascript enabled to view it and Erik Kevin Franco, This email address is being protected from spam bots, you need Javascript enabled to view it , edited by Sarah Sussman, This email address is being protected from spam bots, you need Javascript enabled to view it

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