S&P 500 Surges Past Record 4,000 on Growth Outlook

US stocks climbed to a record high on the first day of the second quarter as increased stimulus in the world’s largest economy fueled optimism about the global recovery. The S&P 500 rose by 1.18% to 4,019.87 while Dow Jones was up 171.66 points (0.52%) to 33,153.21.

US Manufacturing Surges Most Since 1983, Underscoring Rebound

US manufacturing expanded in March at the fastest pace since 1983, catapulted by the firmest orders and production readings in 17 years. Stronger growth in new orders and output highlight accelerating household and business demand as increased vaccinations, fewer pandemic-related restrictions and fiscal relief provide a clearer path for the economic recovery.

US Jobless Claims Rise as Labor Market Recovery Remains Choppy

Applications for US state unemployment insurance unexpectedly rose last week but remained near the lowest levels of the pandemic as the labor market meanders toward full recovery. Initial jobless claims in regular state programs increased to 719,000 in the week ended March 27, up 61,000 from the prior week, Labor Department data showed.

Bank of Canada Governor Sees ‘worrying’ Signs in Housing Market

The Bank of Canada is seeing “worrying” signs that some Canadians are taking on too much debt to buy into the nation’s hot housing market. Governor Tiff Macklem said there is evidence that loan levels relative to home values are growing -- an indication that some borrowers could be overextending. He also warned people have begun to make purchases based on the belief prices will continue rising.

UK Manufacturing Growth Reaches Decade High as Lockdown Eases

UK manufacturing growth accelerated to its highest level in a decade last month as orders jumped in anticipation of looser lockdown restrictions. IHS Markit’s Purchasing Managers Index climbed to 58.9 in March, outstripping economist estimates to deliver its strongest reading since 2011. Factory output expanded at the quickest pace since November, the 10th consecutive month of gains.

Asian Manufacturing Is Surging on Strong Global Goods Demand

The world’s manufacturing heartland in east Asia is booming as global trade surges amid the recovery from the pandemic. Taiwan’s manufacturing PMI for March climbed to 60.8, its highest level in more than a decade. Elsewhere in Asia, PMIs from Vietnam and Indonesia remained in expansion. Malaysia and Thailand, while still below 50, inched closer to the level that separates expansion from contraction.

Singapore Home Price Growth Quickens, Stoking Worries of Curbs

Singapore home prices grew at a faster pace last quarter, stoking concerns that the government could join other nations that are introducing measures to calm the property market. Private property values increased 2.9% in the three months ended March 31, preliminary figures from the Urban Redevelopment Authority showed. That’s the biggest gain since the second quarter of 2018.

Oil Rises After OPEC+ Agrees to Gradual Monthly Output Increases

Oil climbed the most in nearly a week with the OPEC+ alliance’s deal to gradually increase supply affirming expectations that demand will continue to grow. Brent crude for June settlement rose US$2.12 to US$64.86 per barrel.

Source: Affin Hwang Research - 2 Apr 2021