Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Chinese Growth, Housing Starts and Vaccine Booster Shots - What's up in Markets

EconomyApr 16, 2021 06:34AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Geoffrey Smith 

Investing.com -- China registered record growth in the first quarter, but the numbers were flattered by base effects and fell short of expectations. U.S. bank earnings continue to roll in, with Morgan Stanley (NYSE:MS) in the spotlight after stellar results so far from Wall Street. Housing starts and building permits are expected to have rebounded in March. And Pfizer’s CEO says everyone is going to need booster shots of his vaccine – possibly for years to come. Here’s what you need to know in financial markets on Friday, April 16th.

1. China’s record growth still manages to disappoint

The tyranny of base effects on economic data was in full show overnight, as China posted 18.3% gross domestic product growth on the year in the first quarter.  However, the quarterly dynamic slowed, with GDP rising only 0.6% from the previous three months. Both numbers were slightly below expectations.

Monthly indicators were broadly robust, with retail sales and fixed asset investment both outstripping expectations as they caught up with the earlier rebound in industrial production.

Chinese stocks perked up a little, but remain in the doldrums and are down for both the week and the month, amid concerns about defaults in the corporate bond space. The fate of state-owned asset manager Huarong remains the biggest of these after its credit was downgraded by a local agency on Thursday.

2. Can the housing sector match retail?

U.S. data today focuses on the housing market, with March data for housing starts and building permits due at 8:30 AM ET.

Housing starts are expected to have picked up after two straight falls influenced to a large degree by the weather. They remain well short of their 2005 peak, however, and a new study by mortgage agency Freddie Mac (OTC:FMCC) quoted by The Wall Street Journal suggests that the U.S. still has an acute deficit of single-family homes.

Building permits are also expected to have rebounded after falling in February.

At 10 AM ET, the University of Michigan’s consumer sentiment survey for April will be published and is likely to map closely with the surge in retail sales in March as the latest round of stimulus checks reached households.

3. Stocks set to open mixed; Nasdaq record in sight

U.S. stock markets are set to open mixed later after the Dow and S&P pushed to new record highs on Thursday in response to the strong retail sales and jobless claims reports.

By 6:30 AM ET (1030 AM ET), Dow Jones futures were up 54 points, or 0.2%, while S&P 500 futures were up 0.1% and Nasdaq 100 futures were down 0.1%.

The stellar performance of Goldman Sachs (NYSE:GS) and the investment bank arms of its rivals this week means that the pressure is on Morgan Stanley to match them when it reports before the open. PNC Financial (NYSE:PNC), State Street (NYSE:STT), Bank of New York Mellon (NYSE:BK) and Citizens Financial (NYSE:CFG) also report.

4. Annual vaccine booster shots may be needed – Pfizer CEO

People may need to get an annual booster shot of Covid-19 vaccine to keep up their antibody levels, Pfizer (NYSE:PFE) CEO Albert Bourla said. 

The comments aren’t radical, but are a reminder that the commercial opportunity for vaccine makers will extend well beyond the crisis phase of the pandemic, which appears to be nearing an end in the U.S.

At a global level, though, infection rates are currently approaching record highs, World Health Organization head Tedros Ghebreyesus said overnight. That’s due to the rampant spread of the disease in Indian and Bangladesh, as well as sustained high rates of new cases in Latin America.

In Europe, meanwhile, German Chancellor Angela Merkel said she hopes to have a new law in place by the end of next week enabling the federal government to impose nationwide controls on business and social life. That comes as new cases hit their highest since the winter surge.  

5. Oil hits one-month high 

Crude oil is back at its highest in a month as this week’s inventory data combine with rising geopolitical risk to underpin prices.

The sanctions against Russia outlined on Thursday by the U.S. administration may not have been as severe as some feared – there will be no prohibition on holding Russian government debt, for example – but tension is still high, given the mass buildup of Russian troops and armor on the Ukrainian border. In the Middle East, meanwhile, repeated missile launches by rebels in Yemen, aimed at Saudi Arabia, have failed to disrupt oil flows but are a constant reminder of tension between the West and Iran, which is backing the rebels.

By 6:30 AM ET, U.S. crude futures were up 0.2% at $63.58 a barrel, while Brent was up 0.3% at $67.11 a barrel. CFTC positioning data and the Baker Hughes rig count are both due later.

Chinese Growth, Housing Starts and Vaccine Booster Shots - What's up in Markets
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (5)
Jimmy Smith
Jimmy Smith Apr 16, 2021 8:00AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Think of the amount of money the Pfizer CEO, Dr. Fauxi and Bill Gates make with a new vaccine, then make it an annual requirement. It's unfathomable.
Anthony Cloud
Anthony Cloud Apr 16, 2021 7:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I missed the part where a virus with a 99.97% survival rate is classified as a “disease”....
Elton Lima
Elton Lima Apr 16, 2021 7:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
China on the way to be the richest nation in the world.
Scalper Trader
Scalper Trader Apr 16, 2021 7:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Who dislike this cannot face the reality
Darryl Allen
Darryl Allen Apr 16, 2021 7:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
they are on the brink of demographic collapse, its not gonna happen
Casador Del Oso
Casador Del Oso Apr 16, 2021 6:45AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Coming soon...Booster shots every 90 days.
Gene Kret
Gene Kret Apr 16, 2021 6:39AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Go TSLA. Oil $4.50 per gal by 1 Jun
Jeffrey Vose
Jeffrey Vose Apr 16, 2021 6:39AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You need oil to make teslas
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email