This is what you need to know to trade today Friday April 2:
Markets have started the second quarter with a rebound after the unveiling of President Biden’s infrastructure plan, hopes for a vaccine-driven recovery, and upbeat US data.While many parts of the world are on vacation, US NFP nonfarm payrolls stand out on Good Friday’s economic calendar, with high expectations.
The S&P 500 index it closed the first day of the second quarter above 4,000 points, raising the profile of stocks worldwide. Optimistic sentiment weighed on the safe-haven dollar. Investors are still taking in the $ 2.25 infrastructure program proposed by President Joe Biden, which will be funded by tax increases.
Republicans have already voiced their opposition to higher rates for businesses, and Congress is likely to modify the program. Ten-year Treasury yields have fallen below 1.70% as prospects for a massive debt issue dim. Gold has been able to take advantage of it and has recovered.
About 30% of Americans have received at least one dose of the vaccine, and the world’s largest economy is on track to vaccinate all adults in early summer. The pace of vaccination has also accelerated in Europe, but COVID-19 infections are increasing. France, Italy and Germany are subject to severe restrictions at Easter.
The US ISM Manufacturing PMI Purchasing Managers Index beat estimates with 64.7 points in March, the highest level since 1983. This forward-looking indicator has raised expectations for the US report. NFP nonfarm payroll Friday, which will be the first of many optimistic posts.
The economic calendar points to an increase of more than 600,000 new jobs, but some analysts have also pointed to a million jobs created. On the other hand, Thursday’s jobless claims data disappointed by jumping back above 700,000.
See: US NFP Nonfarm Payrolls Preview for March: Optimism and Evidence This Time?
See: NFP Non-Farm Payroll Report Preview: Five Reasons Hiring Will Rock And The Dollar May Follow
The combination of low liquidity and high expectations It could prove explosive for currencies, where trading remains active despite the holidays.
Crude oil WTI it is trading above $ 61 after OPEC + countries decided to extend production cuts for another month and despite Saudi Arabia’s announcement that it would ease its voluntary production restrictions in the coming months. Hopes for a strong global recovery have outweighed concerns about oversupply.
The Bitcoin has stabilized below $ 60,000 as institutional interest in the granddaddy of cryptocurrencies increases. Ethereum is flirting with the round $ 2,000 level.
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