US Stocks Rise to All-time High on Growth Bets

US equities climbed to a record high amid solid corporate earnings and confidence that the Federal Reserve will remain accommodative even as robust growth takes the world’s largest economy back to pre-pandemic levels. The S&P 500 rose by 0.18% to 4,187.62 while Dow Jones was down 61.92 points (0.18%) to 33,981.57.

Biden to Set US$1 Million Threshold for Capital Gains Tax Hike

President Joe Biden intends to raise capital gains taxes for those earning more than US$1 million a year, arguing that the move would affect only a tiny share of American households. “One element of this reform would be to change how we tax capital gains,” Brian Deese, the director of the National Economic Council. This change will affect taxpayers making more than US$1 million a year.

Gain in US Durables Orders Trails Forecast on Plane Bookings

Orders for US durable goods rose less than expected in March as a decrease in bookings for commercial aircraft interrupted recent strength in manufacturing. Bookings for durable goods or items meant to last at least three years increased 0.5% from the prior month, after a revised 0.9% decrease in February. Orders excluding transportation equipment rose 1.6%, in line with projections.

Hot US Housing Market to Get Supply Boost With New Listings

Americans who’ve struggled to find an affordable starter home may soon get a break, according to a survey that found that many owners wary of listing during the pandemic are getting ready to do so now. They expect about 10% of the nation’s homes to hit the market this year, up from 8% in a typical year. The survey also found that 58% of the houses that owners plan to sell this year are valued below US$350,000.

German Business Outlook Worsens Due to Virus, Supply Squeeze

German businesses unexpectedly became more pessimistic about the economic outlook as the country continues to battle a stubbornly high rate of coronavirus infections and supply constraints weigh on the recovery. The Ifo institute’s gauge of expectations for the next six months fell to 99.5 in April from 100.3. At the same time, an assessment of current conditions improved.

China Is Already Tapering Stimulus With Drop in Local Bond Sales

China’s local authorities have slowed the pace of debt sales to finance infrastructure projects this year, evidence of a gradual tightening of fiscal policy as the government shifts its focus toward risk control. Local governments have sold or plan to sell US$34.3 billion of the so-called special bonds in January to April to fund shanty town renovations, highways and other infrastructure investment.

South Korea’s Economy Grows More Than Expected on Investment

South Korea’s economy recovered at a stronger pace than expected last quarter, as investment picked up with export growth, while consumption started to rebound. Gross domestic product grew 1.6% during January-March from the previous quarter, the Bank of Korea said. That pushed GDP above its level a year ago for the first time since the start of 2020.

Oil Dips With India’s Virus Surge Looming Over Demand Recovery

Oil slipped with the rapid resurgence of Covid-19 in India and other countries casting a cloud around a return to normal consumption, even as OPEC+ projected a strong global demand recovery this year. Brent crude for June settlement slipped US$0.46 to US$65.65 per barrel.

Source: Affin Hwang Research - 27 Apr 2021