This is what you need to know to trade today Thursday, April 1:
Markets are relatively upbeat on Maundy Thursday after President Biden unveiled a massive tax and spending plan. Concerns over vaccine supplies and the lockdown in France are weighing on confidence. OPEC + members are ready to extend the cuts. US jobless claims and ISM Manufacturing PMI will draw investors’ attention.
The president of the United States, Joe Biden announced a $ 2.25 trillion spending plan which includes significant spending on infrastructure, green initiatives and other efforts to make the world’s largest economy more competitive. It will be financed by tax increases, more importantly, an increase in the rates paid by companies from 21% to 28%.
The program was well telegraphed and caused little immediate nervousness, especially as it awaits a tortuous road in Congress. The index S&P 500 it continued its upward movement towards 4,000 points as the US dollar gained ground, especially against currencies linked to commodity prices.
The 10-year US bond yields They have stabilized above 1.70% but below the highs, allowing gold to rally and climb back above the $ 1,700 level.
Biden promised millions of jobs, and the strength of the job market will be tested through the weekly unemployment claims, which are expected to extend their slide after hitting 684,000 last week.
The second significant publication is the Purchasing Managers Index ISM Manufacturing PMI for March, which serves as a track for Friday’s NFP nonfarm payrolls. It is expected to show strong activity in the industrial sector. ADP’s labor market statistics showed an increase of 517,000 jobs in the private sector in March.
The supply of vaccines has suffered a setback, since until 15 million doses of Johnson & Johnson may have been ruined due to factory confusion in the US That may affect the goal of offering vaccines to all Americans in May.
France to enter a four-week national blockadeas COVID-19 cases threaten to overwhelm the country’s healthcare system. Italy is entering several days of stricter limits on movements during Easter.
The EUR/USD it continues to hover around the 1.17 level and has also been affected by German retail sales, which fell short of estimates with an increase of just 1.2% in February. Christine Lagarde, president of the European Central Bank, challenged the markets to challenge the ECB and its bond buying program.
Ontario, Canada’s most populous province, is also bracing for a lockdown amid a surge in cases, weighing on the Canadian dollar. On the other hand, the Canadian economy grew 0.7% in January, better than expected.
The USD / CAD it also awaits the OPEC + decision on Thursday, which is expected to result in an extension of production cuts. Demand is expected to remain subdued due to the current pandemic.
The Bitcoin it continues to bid for the institutional interest of Visa, PayPal and Goldman Sachs, but remains below $ 60,000. Ethereum has broken above $ 1,900, extending its upward movement.
Liquidity is expected to decline as many investors leave their desks for the Easter holidays. That can trigger choppy price action.
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
