Tech Leads Stock Gains as Treasury Yields Slide

Tech companies led US equity gains as a dip in Treasury yields provided a tailwind for stocks. The S&P 500 rose by 0.70% to 3,940.59 while Dow Jones was up 103.23 points (0.32%) to 32,731.20.

Fed’s Powell and Peers Aren’t Rushing Into Digital Currencies

Federal Reserve Chair Jerome Powell joined international peers in saying the launch of a digital currency would be a momentous step for the financial system that needs careful preparation. They have an obligation to be on the cutting edge of understanding the technological challenges as well as potential the costs and benefits of a digital dollar.

Biden Determined to Tax the Rich After Windfalls From Covid Crisis

President Joe Biden’s economic team at the White House is determined to make good on his campaign pledge to raise taxes on the rich, emboldened by mounting data showing how well America’s wealthy did financially during the pandemic. Democrats need to decide how ambitious to be in trying to revamp the tax code in what’s almostcertain to be a go-it-alone bill.

Fed’s Barkin Sees Strong Economy, Not Near Tapering Assets

The US economy is set for a strong 2021 as the pandemic recedes that will push up prices, but there’s no sign yet that this will deliver unwanted inflation or a need to adjust monetary policy, said Federal Reserve Bank of Richmond President Thomas Barkin. They are going to see an extremely strong year and I think that strong year is going to lead to price pressures.

ECB Boosts Bond-buying After Pledge to Fight Yield Gains

The European Central Bank finally delivered on its promise to boost the pace of emergency bond-buying to combat the economic threat from higher yields. Net purchases settled climbed by US$25.2 billion, the most since the start of December. That figure is reduced by redemptions -- the gross value of purchases will soon be disclosed.

Salmon, Beef, Whisky Exports From UK to EU Plunge After Brexit

UK exports of salmon, beef and whisky to the European Union plunged in January as Brexit roiled the food industry. Salmon shipments declined 98% from the same period a year earlier, while sales of beef fell 92%. Food and drink exports to Germany, Ireland and Italy fell by more than 80%. While the coronavirus pandemic has had an impact on sales, most of the decline is due to new red tape faced by firms since Brexit.

New Zealand Takes Aim at Speculators to Prevent Housing Bubble

New Zealand’s government took aim at property speculators with a suite of new measures to tackle runaway house prices and prevent the formation of a “dangerous” bubble. Prime Minister Jacinda Ardern said that the government will remove tax incentives for investors to make speculation less lucrative and unlock more land to increase housing supply.

Oil Steadies With Demand in Focus After Worst Week in 5 Months

Oil edged higher as investors looked past the uneven demand recovery around the world following crude’s worst weekly plunge since October. Brent crude for May settlement rose US$0.09 to US$64.62 per barrel.

Source: Affin Hwang Research - 23 Mar 2021