“The best traders have no ego. You have to swallow your pride and get out of the losses.” — Tom Baldwin

1. Markets fall as China cuts GDP target — China has lowered its GDP target to 7.5% from the 8% goal that’s been in place since 2005. Chinese leaders are determined to cut reliance on exports and capital spending in favor of consumption.
2. Iran Offers To Resume Nuclear Talks, Allow Inspectors Into Military Site — Iran stated it would be willing to allow inspectors from the UN’s International Atomic Energy Agency (IAEA) to visit its Parchin military complex, which the West believes is part of a suspected Iranian nuclear weapons program.
3. China to cap expansion of major industries — China is planning to limit growth in some of its largest industries, according to a work report Premiere Wen Jiabao recently delivered to the nation’s legislature. The report lists four sectors in which capacity increases should be curbed: auto manufacturing, steel making, shipbuilding and cement production.
4. European Central Bank leaves rates unchanged — Mario Draghi expected to take a wait-and-see approach after the completion last week of the ECB’s second, three-year long-term refinancing operation, or LTRO. The Feb. 29 LTRO saw 800 banks snap up nearly 530 billion euros ($700.3 billion) in three-year loans fixed to the ECB’s 1% refi rate.
5. Over 80% of Greek creditors accepted debt swap — Greece avoids default with debt swap. Greece said €172B of bonds were tendered by private investors in its debt swap, making the participation rate 85.8%. The country intends to amend the terms of all Greek law governed bonds, bringing the participation rate to 95.7%. However, the country’s activation of collective action clauses will likely force the ISDA’s hand in declaring a “credit event,” triggering payouts on CDS.

The week ahead — Economic data from Econoday.com: