Stocks Climb to Record After Strong Economic Data

Stocks rallied to a record after solid US economic data added to evidence the recovery is gaining momentum. The dollar fell while Treasuries were little changed. The S&P 500 rose by 1.44% to 4,077.91 while Dow Jones was up 373.98 points (1.13%) to 33,527.19.

Service Industries in US Expand at Fastest Pace on Record

US service providers experienced the fastest growth on record in March as measures of business activity and orders advanced to new highs. The figures from the Institute for Supply Management underscore how looser business restrictions and increasing economic activity are igniting a rebound in sectors hardest hit by the pandemic and fueling job gains. The ISM’s services index soared to 63.7 from 55.3.

Yellen Declares End to Trump’s Global Retreat, Eyes Tax Deal

Treasury Secretary Janet Yellen outlined the case for a harmonized corporate tax rate across the world’s major economies, part of an effort to restore global leadership and credibility with US allies following the unilateralist approach of the Trump era. In her first major speech on international economic policy, Yellen marked an American return to the “global stage.”

World Bank Chief Says G-20 Likely to Extend Debt-suspension Plan

The Group of 20 gathering of finance ministers from the world’s largest economies this week is likely to extend debt-service suspension initiative for poorer nations until the end of the year, World Bank President David Malpass said. The extension of the reprieve in debt-service payments by many of the world’s poorer nations will probably be the final.

Hot Housing Market Propels Canadian Confidence to Record High

Canadian consumer confidence hit record highs for a third straight week amid soaring sentiment around housing, despite a third wave ripping through the country and forcing new lockdowns. Two-thirds of Canadians believe home values will continue rising. The index has increased almost eight points in the past seven weeks and was hovering at around 56 before the pandemic, which is also about its historical average.

Johnson Eases Lockdown But Foreign Travel on Hold for UK

UK Prime Minister Boris Johnson confirmed restaurants, pubs and shops will open again as England’s lockdown is eased next week, but the ban on foreign travel may remain for longer. The earliest date for resuming non-essential international travel will be May 17 and officials warned that a further delay could be required if coronavirus infections continue to surge elsewhere in the world.

Thai Capital to Close Pubs, Bars in Some Areas to Contain Virus

Thailand ordered closure of entertainment venues including pubs and bars in some areas of the nation’s capital for two weeks to stem the spread of Covid-19 infections ahead of the Thai New Year holiday next week. A total of 196 night-entertainment venues spread over three districts in the capital city will remain closed from Tuesday through April 19, Bangkok Governor Asawin Kwanmuang said.

Oil Drops With Virus Risks in Europe Dimming the Demand Outlook

Oil plunged the most in nearly two weeks as growing delays in Europe’s reopening and looming Iranian supply dampened hopes for a swift decline in global inventories. Brent crude for June settlement declined US$2.71 to US$62.15 per barrel.

Source: Affin Hwang Research - 6 Apr 2021