GLOBAL NEWS

US Stocks Climb While Oil Falls Amid Suez Block

US equities gained amid progress in distributing vaccines and as investors weighed the outlook for economic growth and inflation. Oil tumbled after a rally spurred by the blockage of the Suez Canal. The S&P 500 rose by 0.52% to 3,909.52 while Dow Jones was up 199.42 points to 32,619.48.

Biden Promises New ‘paradigm’ in Economic Program Next Week

President Joe Biden said he will unveil his long-term economic rejuvenation plan next week, promising increased support for the middle class and a major ramp-up in investment and infrastructure spending that will strengthen the US position against China. He alluded to expanded support for health care and tax changes to address a system that currently contributes to “feathering the nest of the wealthiest Americans.”

Jerome Powell says better outlook reflects vaccine progress, fiscal aid

Federal Reserve Chair Jerome Powell said the US central bank would wait until the economy has “all but fully recovered” to pull back the extraordinary monetary support it rolled out in response to the Covid-19 pandemic. Powell said that upgraded economic projections published following last week’s meeting reflected an acceleration in vaccinations against Covid-19 and the historic fiscal support from Washington.

US State Jobless Claims Fell to Pandemic-era Low Last Week

Applications for US unemployment benefits fell to the lowest in a year, signaling improvement for the labor market as more Americans get Covid-19 vaccinations and business restrictions ease in many states. Initial claims in regular state programs fell by 97,000 to 684,000 in the week ended March 20, Labor Department data showed.

French Business Confidence Surges Just Before New Curbs

French business confidence jumped seven points in March at 97, beating economist expectations for a one point improvement and reaching its highest level since the start of the Covid pandemic. The strongest increases were recorded in the retail and services sectors, while the reading for industry was stable after several months of steadier increases.

Korean Consumers Turn Optimistic for First Time Since Pandemic

South Korean consumers turned optimistic for the first time since the pandemic struck early last year, adding to signs that the economy is set for a strong rebound this year. The consumer sentiment index rose by 3.1 points in March to reach 100.5, the highest since January last year, the Bank of Korea said. The improved confidence comes as Korea started to vaccinate its population late February.

Philippines Holds Rates as Recovery Concerns Trump Inflation

The Philippines’ central bank held its key interest rate at a record low for a third straight meeting, voicing increasing concern about rising prices but saying they’re not yet a reason to tighten policy. Bangko Sentral ng Pilipinas left the benchmark rate at 2%. With inflation expected to breach the upper limit of the central bank’s 2%-4% target this year, the bank said it’s vigilant for any evidence that supply bottlenecks are sparking wider price pressures.

Oil Drops in Volatile Week With Suez Canal Blockage Dragging on

Oil dropped as a strengthening dollar and mounting lockdowns in Europe blunted the potential impact of crude cargoes backing up outside the blocked Suez Canal. Brent crude for May settlement slipped US$2.46 to US$61.95 per barrel

Source: Affin Hwang Research - 26 Mar 2021