Stocks Surge to Record With Aid Deluge Imminent

US stocks jumped to an all-time high, powered by a renewed rally in tech shares as investors eye a US$1.9 trillion spending injection from the federal government. The S&P 500 rose by 1.04% to 3,939.34 while Dow Jones was up 188.57 points (0.58%) to 32,485.59.

Biden Signs US$1.9 Trillion Bill, Teeing Up Aid as Soon as Weekend

President Joe Biden signed the US$1.9 trillion pandemic-relief bill into law, capping his first major legislative achievement and allowing aid to flow to tens of millions of individuals, businesses and state and local governments. Biden signed the bill in an Oval Office ceremony alongside Vice President Kamala Harris, one day sooner than expected.

US Jobless Claims Hit Lowest Since November With More Vaccines

Applications for US jobless benefits fell by more than forecast last week to the lowest since early November as Covid-19 vaccinations accelerated and states eased more business restrictions. Initial claims in regular state programs fell by 42,000 to 712,000 in the week ended March 6, Labor Department data showed. On an unadjusted basis, the claims decreased by 47,170 to 709,458.

ECB Doesn’t Intend Faster Bond-buying to Mean More Stimulus

Most European Central Bank policy makers have no intention of expanding their 1.85 trillion-euro (US$2.2 trillion) emergency stimulus program despite their pledge to step up the pace of bond buying to keep yields in check, according to officials familiar with the matter. The Governing Council’s decision to make purchases at a “significantly higher pace” over the next three months means buying debt at a faster rate than the program’s timeline suggests, the officials said.

UK Property Rents Set to Surge as Listings Drop, Survey Says

The cost of renting a home in the UK is likely to rise in the next three months as landlords put fewer properties on the market during the coronavirus pandemic, an industry survey shows. Tenant demand climbed in the quarter to February while new instructions to let out property fell, according to the Royal Institution of Chartered Surveyors. It expects rents to rise 2% this year, and more property appraisers expect growth in the coming three months.

Half-price Flights Aimed to Boost Australia’s Ailing Tourism

Australia’s government will subsidize 800,000 half-price airfares as part of a A$1.2 billion (US$920 million) package to prop up the nation’s ailing tourism industry. To run from April 1 to July 31, the discounted fares are designed to help tourism-dependent regions and should support airlines, hotels and hospitality venues, Prime Minister Scott Morrison said in a statement.

Thailand Plans ‘pawn Shop’ Style Rescue for Hotels Hit by Covid

Thailand is finalizing a rescue plan for tourism-related businesses near collapse from the pandemic that would improve their access to credit from banks wary of further bad loans. The Finance Ministry, Bank of Thailand and commercial banks are working on a plan allowing cash-poor companies to temporarily park their assets with lenders in exchange for credit, and reclaim them within a specified period.

Oil Advances With Signs Emerging of Fuel Consumption Rebound

Oil rose the most in almost a week alongside a broader market rally as signs emerged that a recovery in fuel consumption is gaining traction. Brent crude for May settlement gained US$1.73 to US$69.63 per barrel.

Source: Affin Hwang Research - 12 Mar 2021