Stocks Decline Amid Archegos Fallout Speculation

US stocks dropped from record highs as investors weighed the potential fallout from forced block sales on the rest of Wall Street. Oil rose and Treasury yields climbed higher. The S&P 500 fell by 0.09% to 3,971.09 while Dow Jones was up 98.49 points (0.30%) to 33,171.37.

Biden to Reveal Major Spending Plan With Political Battle Ahead

President Joe Biden this week will reveal the scope and ambition of his plans to expand and reorient the US government, setting the stage for a bitter fight on Capitol Hill that could define his presidency. Biden will unveil the framework for a major infrastructureand-jobs program and offer the first glimpse of his 2022 budget -- which promises to redirect federal funds to areas such as climate change and health care.

ECB Kept Pace of Pandemic Bond-buying Little Changed Last Week

The European Central Bank maintained the elevated pace of its pandemic bond-buying as its strives to deliver on a promise to contain yields to protect the economy. Net purchases settled last week climbed by 19 billion euros (US$22.4 billion), slightly below the 21.1 billion euros recorded in the previous week.

UK Mortgage Approvals Fell as Expiry of Tax Break Approached

UK mortgage approvals fell more than forecast in February, as the housing market cooled in anticipation of an imminent end to a 15,000-pound (US$20,800) tax cut on property purchases. Banks and building societies approved 87,669 loans, down from 97,350 in January, the Bank of England said. Consumers continued to repay debt in the absence of opportunities to spend.

Italy’s Deficit May be Close to 10% in Second Year of Crisis

Italy’s budget deficit is likely to be close to 10% of gross domestic product for a second year as successive lockdowns force the country to boost spending, according to people with knowledge of the matter. Such a projection may feature in Prime Minister Mario Draghi’s new public-finance targets in mid-April, which will also include a higher debt tally for 2021, pushing towards 159% of output, said the people.

Vietnam Sees Inflation Risks Along With 6.5% GDP Growth in 2021

Vietnam’s economy remains on track to meet the government’s goal for the year, with officials bracing for a resurgence of demand that could send inflation to its highest level in years. Gross domestic product can still notch the 6.5% growth the government expects this year, according to Le Trung Hieu, head of the General Statistics Office’s GDP department.

Thailand Sees Chinese Leading Tourists to Phuket After Reopening

Thailand expects about two million foreign tourists, mostly Chinese and Europeans, to visit Phuket this year after the nation’s most popular resort island reopens to vaccinated visitors from July 1. The holidaymakers may generate about 105 billion baht (US$3.4 billion) in revenue in the second half, according to Vichit Prakobgosol, vice president of the Tourism Council of Thailand.

Oil Rises for Second Day With Focus Moving Toward OPEC+ Meeting

Oil climbed to the highest in almost two weeks as traders looked ahead to this week’s OPEC+ meeting with speculation that renewed demand concerns will spur the group to keep production in check. Brent crude for May settlement gained US$0.41 to US$64.98 per barrel.

Source: Affin Hwang Research - 31 Mar 2021