US Stocks Up on Powell; Asia Set for Mixed Start

US stocks reversed losses after reassuring comments from Federal Reserve Chairman Jerome Powell on inflation and the outlook for growth spurred traders to buy the dip. The S&P 500 rose by 0.13% to 3,881.37 while Dow Jones was up 15.66 points (0.05%) to 31,537.35.

Powell Signals Fed to Keep Buying Bonds Even as Outlook Improves

Federal Reserve Chairman Jerome Powell signaled that the central bank was nowhere close to pulling back on its support for the pandemic-damaged US economy even as he voiced expectations for a return to more normal, improved activity later this year. “The economy is a long way from our employment and inflation goals, and it is likely to take some time for substantial further progress to be achieved,” he said.

Biden’s Trade Chief Tasked With Reset After Trump Tariff Chaos

Weeks before the White House said it would keep tariffs in place on more than US$350 billion in Chinese goods, Katherine Tai, who is President Joe Biden’s pick for US Trade Representative, told executives that lobbying for the duties to be removed wouldn’t work, according to people familiar with her remarks. Instead, companies keen to keep the so-called phase one trade deal -- struck by the Trump administration and Beijing - - should be prepared to live with the tariffs too, Tai said.

French Have a US$146 Billion Savings War Chest From Covid Crisis

French households built up as much as 120 billion euros (US$146 billion) in excess savings in 2020 as lockdowns curtailed spending and government aid maintained incomes, according to the Bank of France. The central bank also said that while there was a 217 billion euro increase in gross debt levels of non-financial companies in 2020, their cash positions also rose by 200 billion.

Sunak to Spend Billions Saving UK Jobs as Covid Hits Workers

The UK’s finance minister Rishi Sunak is set to spend billions of pounds in extra support for the economy over the next four months, as pandemic curbs pushed unemployment to its highest level in almost five years. Sunak suggested support will extend beyond the end of lockdown measures as he seeks to spur economic recovery.

UK Accepts EU Request for More Time to Scrutinize Brexit Deal

The UK agreed to allow the European Union to delay ratification of their post-Brexit trade deal by a month, injecting more uncertainty into the already fragile start to the two sides’ new relationship. In a letter to the European Commission, Cabinet Office Minister Michael Gove said that he expects that the EU “should be able to satisfy its internal requirements” by the end of April and the UK “would therefore not be asked to further extend the period of provisional application.”

Thailand Mulls Waiving Quarantine for Vaccinated Tourists

Thailand may scrap its two-week mandatory quarantine for foreign visitors with proof of Covid-19 vaccination as the nation seeks to revive its pandemic-hit tourism industry. Prime Minister Prayuth Chan-Ocha said his government will consider allowing visitors who can produce a vaccination certificate to skip the quarantine. The move could bolster Thailand’s tourism sector that contributed about one-fifth to the nation’s prepandemic economy.

Oil Falls After Industry Report Shows Surprise US Supply Rise

Oil declined in New York after an industry report showed US crude stockpiles rose last week amid a spate of refinery outages from the country’s recent cold snap. Brent crude for April settlement climbed US$0.13 to US$65.37 per barrel.

Source: Affin Hwang Research - 24 Feb 2021