GLOBAL NEWS

Tech Leads Stock Retreat; Dollar Falls

US stocks retreated from an all-time high as investors awaited the heart of the earnings season and more economic data later in the week. The dollar fell. The S&P 500 declined by 0.53% to 4,163.26 while Dow Jones was down 123.04 points (0.36%) to 34,077.63.

Biden Rushes Jobs Reassurance Along With 50% Emissions Cut

As President Joe Biden unveils an ambitious target this week to cut the nation’s climate-warming emissions, his administration is also taking steps to refute critics who say it’ll put large numbers of American jobs at risk. Administration officials scheduled events to make the case that the president’s fight against climate change will be a net gain for employment, creating more jobs than it will eliminate.

Trudeau Bets on Fast Growth and Low Inflation to Curb Deficits

Justin Trudeau’s government set the table for a possible election in Canada with a budget that promises big spending on new programs such as childcare and a return to small deficits by 2025. After running one of the largest shortfalls of any developed country last year, Finance Minister Chrystia Freeland outlined US$80.9 billion in new policy actions over three years to aid the economic recovery.

Bank of England Joins Global Peers Exploring a Digital Currency

Britain’s Treasury and BOE are weighing the potential creation of a central bank digital currency, joining authorities from China to Sweden exploring the next big step in the future of money. The government and central bank announced the creation of a task force to coordinate on the possibility of BOE-issued digital money for use by households and businesses.

UK Says Home Working Held Back Pay and Promotions Before Covid

Working from home in the UK tended to hurt the careers of those doing it before the pandemic, new government data show. Those who mainly worked at home were significantly less likely to be promoted, receive a bonus or training. Last year, home workers also put in more hours of unpaid overtime. This may suggest that they were less productive than those who never worked from home.

Japan’s Exports Jump Most Since 2017 Amid Global Trade Recovery

Japanese exports posted a double-digit gain for the first time in more than three years in March, offering another indication that a recovery in global trade is gaining strength. The value of overseas shipments jumped 16.1% from a year ago, led by exports of cars, plastics, semi-conductors and chip-making equipment. Exports to China surged by more than a third.

China Sticks With Old Growth Drivers to Spur Covid Recovery

After fueling its V-shaped recovery by boosting spending on housing and infrastructure, China appears in no rush to drop its investment-led growth model despite international calls for it to “rebalance” its economy. First quarter data released underlined just how reliant China remains on its current approach. Beijing approved investment projects in energy, transport and hi-tech sectors worth 45.4 billion yuan in the first quarter alone.

Oil Edges Higher With Weaker Dollar Amid Mixed Demand Outlook

Oil edged higher with help from a weakening dollar while a worsening demand picture in parts of the world continued to hold back prices from another breakout. Brent crude for June settlement rose US$0.28 to US$67.05 per barrel.

Source: Affin Hwang Research - 20 Apr 2021