GLOBAL NEWS

Small Caps Lead Stock Gains on Solid Economic Data

Stocks climbed after strong economic data added to evidence the recovery is gaining momentum, with traders also assessing a batch of corporate earnings. The dollar retreated. The S&P 500 rose by 1.09% to 4,180.17 while Dow Jones was up 227.59 points (0.67%) to 34,043.49.

US Business Output Expands Most on Record, IHS Markit Says

A gauge of output at US manufacturers and service providers reached a record high in April, adding to evidence of stronger demand that’s fueling inflationary pressures. The IHS Markit flash composite index of purchasing managers at manufacturers and service providers increased to 62.2, the highest in data back to 2009, from 59.7 a month earlier. Readings above 50 indicate growth.

US New-home Sales Rise More Than Forecast After Winter Setback

US new-home sales rebounded sharply in March to the highest since 2006, suggesting that the housing market is back on track after winter storms impeded demand in February. Purchases of new single-family homes increased 20.7% last month to a 1.02 million annualized pace after an upwardly revised 846,000 rate in the prior month. Inclement weather delayed the search for homes in February and a lack of properties for sale has also hindered purchases.

French Services Rebound, German Factories Face Supply Squeeze

French services returned to growth in April while German manufacturing softened to 66.4 amid supplier delivery delays. Purchasing managers’ indexes from the euro area’s two largest economies showed businesses were confident at the start of the second quarter that they’ll soon be able to put the pandemic crisis behind them, even as lockdowns persist amid continuously high infections. France’s services PMI rose to an 8-month high to 50.4 in April.

UK Economic Activity Surges at Fastest Pace in Seven Years

UK economic activity accelerated at the fastest pace in seven years this month, providing more signs of a strong rebound as the government began allowing stores and restaurants to reopen. IHS Market’s flash Composite Purchasing Managers Index climbed to 60 in April to its highest level since 2013, and retail sales in March grew the most in nine months by 1.6%.

Japan’s Factory PMI Expands as Virus Outbreak Weighs on Services

Japan’s manufacturing activity expanded for a third month in April while a contraction in the service sector continued amid a fresh wave of coronavirus infections. The au Jibun Bank Japan’s purchasing managers index for manufacturing sector activity rose 0.6 point to 53.3, while its measure of service sector activity was unchanged at 48.3. Factory activity has been supported by a recovery in exports to the US and China.

Thailand Plans US$12 Billion Boost for Local Economy, Premier Says

The Thai government plans to inject US$12 billion into the economy, as the country faces its biggest outbreak so far of the coronavirus, according to Prime Minister Prayuth Chan-Ocha. The funds will be used to stimulate local consumption and promote investment and economic activities. The prime minister’s speech came after the country reported its biggest one-day jump in the number of infections.

Oil Posts Weekly Loss With Market Facing Patchy Demand Rebound

Oil fell this week with spreading coronavirus cases in countries such as India tempering optimism around positive signs out of the US and Europe. Brent crude for June settlement rose US$0.71 to US$66.11 per barrel.

Source: Affin Hwang Research - 26 Apr 2021