Market Commentary - April 5, 2021
Good Friday and Easter holiday leaves global benchmarks subdued if not closed for the long weekend. Wall Street futures pointed lower on Monday open after consecutive days of rallies last week following President Biden’s unveiling of a $2.25tn infrastructure spending spree anticipate to well position tech firms for future growth, especially the R&D grants and broadband upgrades.
To the east, China’s central bank sound warning bells as it urges lender to rein in credit supply by keeping new loans in the 1st quarter at or below the same level as last year. Guidelines were introduced by PBOC in the face of a 16% growth in new-loans, risking overheating the economy.
Lockdown fatigue becomes more prevalent across Europe as the bloc faces a resurgence in COVID-19 infections, a rising death toll and a disappointing vaccination roll-out.
Figure 1 (Source: IS Prime) Bitcoin Daily : Bitcoin struggles to break-past $60,000 after its 3rd attempt was met with resistance.Headliner to Review
- US nonfarm payrolls surged by 916,000 jobs last month, increasing from 468,000 to 916,000, which was much higher than the expectations of 652,000. Data for February was revised higher to show 468,000 jobs created instead of the previously reported 379,000.
- It is expected that the forecast payrolls increasing by 647,000 jobs in March. The unemployment rate fell from 6.2% in February to 6.0% in March. The unemployment rate has been understated by people misclassifying themselves as being "employed but absent from work."
- US Average Hourly Earnings m/m decreased from 0.3% to -0.1%, which was worse than the expectations of 0.1%.
Headliner to Watch
- US ISM services PMI expected to expand even further jumping from 55.3 to 58.3 as President Biden’s vaccination schedule has alleviated concerns of future lockdowns and breakouts in coronavirus infection.
- No change expected from the RBA with a recovering labour market offset by weaker retail sales and trade data. The government vaccine roll-out thus far has been in shambles. Originally estimating 4 million Australian would be vaccinated by the end of March. Thus far only 850k have received a shot.
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Topics: Market Commentary