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

Recovery bets support stocks as Fed comes in focus

EconomyMar 15, 2021 05:15AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. A man wearing a protective face mask walks past a screen displaying a graph showing recent Nikkei share average outside a brokerage, amid the coronavirus disease (COVID-19) outbreak, in Tokyo 2/2

By Danilo Masoni and Hideyuki Sano

MILAN/TOKYO (Reuters) - World shares inched higher while U.S. bond yields hovered near a 13-month peak on Monday on bets economic growth would accelerate even though investors became wary of the Federal Reserve and other key central bank meetings in the days ahead.

The $1.9 trillion stimulus bill President Joe Biden signed into law last week and the rollout of COVID-19 vaccinations stoked a bullish mood, but the focus was gradually turning to the outlook for monetary policy.

"The Federal Reserve is expected to rigidly stick to its easing plans, despite (Fed Chair Jerome) Powell & Co likely becoming significantly more upbeat on the outlook," said AFS analyst Arne Petimezas in Amsterdam.

"However, the risks are towards a hawkish surprise. The $1.9 trillion stimulus has been adopted without much ado and the Biden administration has now set its sight on a big figure infrastructure bill," he added.

European shares rose 0.7% in morning trading following gains in Japan .N225, while S&P 500 futures ESc1 rose 0.2%, just below a record high level touched last week.

The MSCI world equity index, which tracks shares in 49 countries, was up 0.1% by 0847 GMT.

Mainland Chinese shares, however, dropped despite data showing a quickening in industrial output and a rise in retail sales, with bluechip CSI 300 index falling 2.2% on policy tightening worries.

Surveillance equipment maker Hikvision 002415.SZ lost 3.2% after the U.S. Federal Communications Commission designated the firm, along with four others Chinese companies including Huawei, as posing a threat to national security.

The U.S. House of Representatives gave final approval last week to the COVID-19 relief bill, giving Biden his first major victory in office.

"This will provide another shot in the arm for a U.S. economy sprinting out of a deep hole (10 million jobs are still missing at present)," said Natixis economist Troy Ludtka in New York.

"We see the macro backdrop - stimulus included - as being sufficient to jolt the U.S. economy beyond the 6% growth mark," he added in a note.

Investors also suspect the $1.9 trillion package, which amounts to more than 8% of the country's GDP, could stoke inflation - to the detriment of bonds, especially when their yields are so low.

Rising inflation expectations could prompt the Federal Reserve to signal it will start raising rates sooner when it announces its latest economic projections at the end of Federal Open Market Committee meeting on Wednesday.

"Following the fiscal stimulus packages it is inevitable that Fed GDP forecasts will be revised up, and some FOMC members might think rates will have to move higher sooner than they anticipated last December," wrote economists at ANZ.

The Bank of England and Bank of Japan also have meetings on Thursday and Friday this week.

The 10-year U.S. Treasuries yield US10YT=RR stood at 1.619%, having hit 1.642% on Friday, a high last seen in February last year.

Higher U.S. bond yields saw the dollar rising against other major currencies. The dollar index =USD rose 0.1%.

The euro slipped 0.2% to $1.1932 from last week's high of $1.1990 while the dollar hit a nine-month high of 109.36 against the Japanese yen.

The British pound slipped 0.3% to $1.3933.

Bitcoin fell 1.6% from a record high after Reuters reported that India would propose a law banning cryptocurrencies.

Oil prices rose as data showed China's economic recovery accelerated at the start of 2021, boosting the energy demand outlook at the world's largest oil importer.

Brent crude gained 0.8% to $69.76 a barrel, while U.S. West Texas Intermediate crude added 0.8% to $66.14.

Recovery bets support stocks as Fed comes in focus
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other 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, don’t trash it.

  •           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. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. 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 (15)
Unoqueva Alguno
Unoqueva Alguno Mar 15, 2021 2:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Congratulations! Today is the 1 year anniversary of "Stimulus Hopes, Vaccine Hopes" title.
perplexed76 .
perplexed76 . Mar 15, 2021 2:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
no, it's actually started in September 2020
Brian Springer
Brian Springer Mar 15, 2021 2:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
the only reason is more buyers than sellers, the same reason every single time
Gagandeep Kaur
Gagandeep Kaur Mar 15, 2021 1:46AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
sleepy a s what is up?
Tarang Shah
Tarang Shah Mar 15, 2021 1:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
economic hopes? faded away? drama ended? asia in deep red yet again!
Ronaldo Almeida
Ronaldo Almeida Mar 15, 2021 1:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
yeh, weird words " Asia buckled the trend to trade lower..." so ????
Ronaldo Almeida
Ronaldo Almeida Mar 15, 2021 1:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
yeh, weird words " Asia buckled the trend to trade lower..." Explanation missing.
RichUncle Pennybags
RichUncle Pennybags Mar 15, 2021 1:01AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Id say it was strange how many people below are against the economy doing well but then i remember terr/orists have access to the internet
Show previous replies (1)
perplexed76 .
perplexed76 . Mar 15, 2021 1:01AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
you can take a loan and tell everybody that you are doing great.
Chris Fran
Chris Fran Mar 15, 2021 1:01AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
you can take the loan to feed your family while continue to work, then pay off the loan in the near future. that's the modern life for corps, individuals, and surprise surprise.. for govt too. I'm sure you already knew that but prefer to pout in the corner
Chris Fran
Chris Fran Mar 15, 2021 1:01AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
oh did you complained when the 2017 rax cut added 2.2T to the debt when the economy was good then? you're perplexed I know.
John Thompson
John Thompson Mar 15, 2021 1:01AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Chris Fran   and get increases of 2% cpi on yr salary for the next ten years when the cost of living is 10% per year lifes great for the top 1% and lying government all in cohoots hahaha
Darryl Allen
Darryl Allen Mar 15, 2021 1:01AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
that was 2.2T over 10 years, so 220B to the deficit, not the debt
Gustavo Lopez
Gustavo Lopez Mar 15, 2021 12:27AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Dam, those puts are done fellas 🤣
Samuel Mapang
Samuel Mapang Mar 15, 2021 12:27AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
ded
rweqrwq rwqrwqrwq
rweqrwq rwqrwqrwq Mar 15, 2021 12:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
recovery bets.... hahahaha , ive been seeing this title for  a year now
Jose Soberanes
Jose Soberanes Mar 15, 2021 12:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Fake News... ***news because corrupt biden is president
TL Chan
TL Chan Mar 15, 2021 12:01AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Don't fall into the CCP joined Wallstreet stock market global harvesting action cycle.
William Smith
William Smith Mar 14, 2021 11:49PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Inch up? Guess Reuters missed the selloff in China and most of Asia tonight.
Marcus Colone
Marcus Colone Mar 14, 2021 11:38PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Umm, what? They're barely green. Always need to find a reasy "why" assets are moving. It's the LEAST important element. How about giving us the "WHEN" Instead.
Cal Lowe
Cal Lowe Mar 14, 2021 11:16PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
reality will kick in hard in a few days after this stimulus hype is over
Antique Purveyor
Antique Purveyor Mar 14, 2021 11:16PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
yeah, the reality is if you are sitting on the sidelines you are missing out. Cash is a dangerous position right now.
Shane Gg
Shane Gg Mar 14, 2021 11:16PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Antique Purveyor  I bet you think BTC is a more safe asset than gold too, eh?
Bhagwan Dass
Bhagwan Dass Mar 14, 2021 11:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
eat rice no need of edible oil
Shane Gg
Shane Gg Mar 14, 2021 11:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Try making a good gravy without it.
Nik Klaus
Nik Klaus Mar 14, 2021 11:03PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Flatish opening and closing expected, with a probable rise in the first followed by a equitable fall if not breached 15175.
Joel Schwartz
Joel Schwartz Mar 14, 2021 10:48PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Markets that *need* constant helicopter money are not strong market. Their entire valuation metric is broken when they only follow the M2 money supply...
 
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