It has been a bright start to the day for advanced economies, with five separate data releases performing better than expected.

Starting in Asia, Japan saw headline inflation for January slow to 1.5%, a figure that was softer than anticipated. Notably, this represents the first instance in nearly four years where the rate has dipped beneath the target set by the central bank.

In Europe, the Eurozone PMI outperformed consensus forecasts. This achievement was driven by a significant turnaround in Germany, where the manufacturing sector entered expansion territory for the first time in almost four years.

Meanwhile, the UK delivered a trio of strong updates. January saw the largest budget surplus on record, thanks to a combination of lower debt-service payments and rising tax revenues. This financial boost provides the government with substantial headroom within its fiscal rules, offering valuable flexibility for the final quarter of the fiscal year.

Further strengthening the British outlook, the January PMI increased to 53.9. This result topped the consensus prediction of 53.2 and stands as the strongest reading in nearly two years. Finally, retail sales in the UK surged by 1.8% in January, shattering the forecasted 0.2% rise. This marks the fastest pace of growth for the sector in almost two years.

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