Global Overview Fed Warns Investors The rise in asset prices in the stock market poses an increasing threat to the financial system, the Fed has stated in its report. High asset prices reflect soft monetary policy, but some assets are valued higher than historical rates even when using metrics that factor in Treasury bond yields. …

Global Overview Strong Spending Rebound Major stock indices are trading in the red, as there is regular profit- withdrawing at the end of the month. Investors are taking a break after the publication of strong reports for the first quarter of 2021 and positive macroeconomic statistics. The published data on personal spending of Americans in …

Global Overview Strong Earnings Season America is undergoing a season of strong reporting. Major US stock indexes are showing positive momentum, recovering slightly from their worst drop in weeks in response to reports of impending tax hikes for the wealthy. Quotes are also growing thanks to positive macroeconomic statistics published on Friday. In response to …

Global Overview China On Track To Recovery China’s rapid economic recovery is set by an increase of 34.5% in industrial production and 24.5% in retail sales, while services and household consumption are lagging behind. The country’s National Bureau of Statistics has registered a Q1 output rise of 10.3% which is higher than the same period …

Global Overview U.S. Economy is Healing The goods and service sectors are growing at rates simply not seen in a long time. March readings for the U.S. service and manufacturing growth came in at 63.7 and 64.7, respectively. A reading above 50 indicates growth. The combined services and manufacturing score of 128.4 is the best …

Global Overview EV Companies to Benefit from Infrastructure Plan President Joe Biden is set to unveil his $2 trillion infrastructure plan in the steel town of Pittsburgh today. The biggest beneficiaries should be electric-vehicle makers and clean-energy providers. Biden’s plan includes additional incentives to buy electric vehicles in the form of tax credits and rebates. …

Global Overview Sino-American Tensions Tensions between the U.S. and China are on the rise — and the sometimes impenetrable geopolitical issues are getting real for investors. The S&P 500 has dropped about 0.6%. The Shanghai Composite is down about 1.1%, and it’s hard to pin the move on geopolitical fears. The tensions are having an …

Global Overview How to Spend a Stimulus Check? With the third round of stimulus checks but certain to start coming this past month, Americans will begin thinking about how they will use the cash. The next round of stimulation more directly aims at lower earners, who are more likely to spend their checks than others. …

Global Overview The Great Divide Pandemic containment and relief are Biden’s leading priority. This bill is really a “test of the ability to combine Democrats in the Senate… and risks lasting harm to his sway if he fails“. Much like their House colleagues, Senate Republicans will likely unanimously oppose the bill. Together with the chamber …

Global Overview The Blessing of Inflation? With a rapid vaccine, roll-out and incoming stimulus Investors are expecting swift economic growth, as they also fear that inflation will strike capital markets. The yield on 10-year Treasury is up to 1.36% with a big leap from 0.9% at the beginning of 2021. As investors are aiming to …

Global Overview Rising Rates are After Stocks Stocks have dropped due to a sudden surge in interest rates, as bonds attractiveness increases for investors. The yield on 10-year Treasury debtjumped to 1.31% which is associated with the White House’s intention of increasing government spending in order to support the economy while risking to create stronger …

Global Overview The Worst GDP Slump in 300 years Bank of England has reported the largest UK economic slump in more than 300 years. The economy has plummeted by 9.9% in 2020 amid the global pandemic and is more than double of GDP shrinkage that has occurred during the financial crises of 2009. As BOE …

Global Overview Battle for Stimulus As the debate on $1.9 trillion package intensifies, members of the Biden administration are preparing to weigh in on various specifics including direct payments and earning thresholds. Democrats have unveiled a new proposal of $3,000-per-child direct benefit, which is viewed as a defining feature of Biden’s economic agenda. If congress …

Global Overview Regulators vs. Volatility Treasury Secretary Janet Yellen has initiated a meeting with U.S. financial markets regulators amid recent market volatility. The Treasury Department is seeking to identify potential misconduct and question brokerages’ decision to halt trading for retail investors. It is not clear whether any policy moves will be implemented in foreseeable future, …