Morning Update Note
Thursday 15th April 2021
- U.S. stocks closed mostly lower Wednesday, after the Federal Reserve’s Beige Book pointed to a moderate pace of economic growth this spring, but a slight inflation uptick in 2021.
- The Dow Jones Industrial Average rose 53.62 points, or 0.2%, to finish at 33,730.89, or 0.5% below its March 23 all-time closing high. The index also hit an intraday record of 33,911.25.
- S&P 500 fell 16.93 points, or 0.4%, closing at 4,124.66, after flipping negative earlier in the session.
- Nasdaq Composite slid 138.26 points, or 1%, ending at 13,857.84.
- The Russell 2000 advanced 0.8% to close at 2,247.72
- Meanwhile, Federal Reserve Chairman Jerome Powell on Wednesday suggested the Fed would follow the same playbook it developed in 2013 and 2014 once it decides to reverse its asset-purchase program, meaning a tapering of asset purchases would come “well before” any interest-rate increase, during a speech at the Economic Club of Washington.
- In other economic data, the U.S. import price index increased 1.2% in March, and 0.8% stripping out for fuel prices. Economists polled by Dow Jones and The Wall Street Journal had forecast 0.9% increase.
- America’s economic recovery from the Covid-19 pandemic was in focus throughout the session after the FDA’s recommendation that J&J’s vaccine be paused in order to observe “an abundance of caution” after six reported cases of a rare and severe type of blood clot following the vaccine’s administration.
- Coinbase Global, one of the first cryptocurrency exchanges to go public, saw shares pop and drop on their debut Wednesday, after the exchange was briefly valued above $100 billion.
- Shares of JPMorgan Chase & Co. fell 1.9% Wednesday, after CEO Jamie Dimon noted loan demand would remain “challenged” even as the banking giant reported first-quarter profit and revenue that beat expectations.
- Dollar General Corp. said Wednesday that it aims to hire up to 20,000 people at in-person and virtual hiring events that the discount retailer will host from April 19 through April 23. Shares rose 0.7%.
- European stocks rose on Wednesday on upbeat earnings from software firm SAP and French luxury goods maker LVMH, while German shares lagged after sources said the country’s economic institutes cut 2021 GDP forecast.
- The pan-European STOXX 600 index rose 0.2%, closing just 0.2% shy of record highs, as an impressive bounce-back in sales saw LVMH scale a record highs, spurring gains in other luxury names.
- Germany’s DAX index ended 0.2% lower. Economic institutes will cut their joint 2021 growth forecast for Europe’s largest economy to 3.7% from 4.7%, sources said, due to a longer than expected COVID-19 lockdown.
- Data earlier in the day showed euro zone industrial output declined as anticipated in February, including in Germany, dampening prospects for economic growth in the first quarter.
- European stocks have notched all-time highs in recent days on hopes of a strong quarterly reporting season, as well as a rapid recovery in the global economy despite a resurgent COVID-19 pandemic.
- Earnings for companies listed on the STOXX 600 are expected to jump 55.7% in the first quarter, according to Refinitiv IBES data, more than the 47.4% rise forecast a week earlier.
- Britain’s biggest retailer Tesco fell 2% after reporting a 20% drop in full-year pretax profit, while British airline easyJet rose 5.8% after saying it expected to start to fly more from late May.
- Miners gained after Goldman Sachs painted a robust outlook for copper miners, adding there is potential for re-rating stocks higher as investors increasingly seek exposure in the red metal.
- Asian stock markets were mixed Thursday after Wall Street retreated from a record high as major banks reported strong profits at the start of the U.S. earnings season.
- The Shanghai Composite Index lost 1.2% while the Hang Seng in Hong Kong declined 1.1%.
- The Nikkei 225 in Tokyo gained 0.1% and the Kospi in Seoul added 0.2%.
- The S&P/ASX 200 in Sydney was up 0.2%. Benchmark indexes in Singapore, Taiwan and Indonesia inched higher.
- 10yr and 30yr US treasuries are currently trading at 1.62% and 2.30% respectively.
- 10yr UK gilts trade with a yield of 0.80%.
- German 10yr bund yields trade at -0.27%.
- 10yr Italian and Spanish bond yields trade at 0.78% and 0.41% respectively.
- The WTI crude oil price is $63.09
- Brent crude is $66.53
- The gold price is $1,746.90
- The silver price is $25.60
- The COMEX copper price is $4.16
- The Yen is trading at 108.82 against the US dollar.
- The pound is trading at 1.38 against the US dollar.
- The pound is trading at 1.15 against the Euro.