Yazar: Geoffrey Smith
Investing.com – The US will have enough vaccinations for all adults by May, Texas lifts business restrictions and masks. ADP will share special employment reports for February, stock markets will recover, and the European Central Bank (ECB) has changed its mind to halt the increase in bond yields. Oil prices soared ahead of the OPEC + meeting, and US stock data will be released.
Here’s what you need to know in financial markets on Wednesday, March 3.
1. Vaccine abundance; Texas removes mask requirement
The US economy is on the way to opening faster than thought. Johnson & Johnson (NYSE 🙂 and Merck made a deal to significantly increase the production of J & J’s newly approved single-dose Covid-19 vaccine.
President Joe Biden said this agreement could guarantee that all adults will have a chance to be vaccinated by the end of May. The first predictions were that he would find July. This increases the chances of the tourism and hospitality sectors to reopen earlier and completely.
A separate but related development was that Texas became the largest state to remove the requirement to wear a mask and end the Covid-19 restrictions. This move has also been a need for Governor Greg Abbot to change the local political narrative, following the disaster with energy supplies in cold weather last month, as well as a decrease in infections and hospital treatments in recent weeks.
2.Australia already offers a taste of post-epidemic life
Australia has already offered a taste of what to expect when economies open for summer.
‘Lucky Country’ reported that GDP growth in the last quarter increased by 5.1%, well above the expectations of 2.5%, largely thanks to consumers who spent the savings surplus accumulated in previous quarters. Many politicians, including Bank of England executive Andrew Bailey, expect a huge increase in spending, especially in the service sector, when quarantines are lifted.
But the short-term reality remains problematic. Italy has announced plans to tighten restrictions on work and social life in some regions following an increase in cases, and new infections have doubled since Poland relaxed the rules. Germany will announce a slight relaxation in Covid-19 rules later this week. Final PMIs for the euro area showed that overall activity continued to shrink in February, albeit at a slow pace.
3. Stock markets will recover; Dollar Tree and Marvell earnings; ISM service survey
US stock markets will open higher on Tuesday, especially in the face of brighter expectations for a reopening of economies, especially after tensions triggered by big sales in tech stocks.
It rose by 215 points, up 0.6% and 0.7%.
The notable names are Brown Forman (NYSE :), Marvell (NASDAQ 🙂 and Dollar Tree (NASDAQ :), while the earning period is coming to an end. Interest may now be in the February ADP private sector employment report. The ISM non-manufacturing survey will also be shared.
4. ECB relaxed on increased bond yields
The European Central Bank (ECB) reportedly has hesitations about the need to react to recent increases in bond yields, according to Bloomberg.
The news agency reported that sources close to the bank stated that there was no need to increase bond purchases as recent sales reflect progress in sentiment regarding the economic outlook. Last week alone, President Christine Lagarde said the ECB will closely monitor nominal bond yields. This message has been interpreted by many as not ready to allow financial conditions to tighten under any circumstances.
Central banks showed varying degrees of concern over the sale seen in bonds last week. Fed Governor Lael Brainard said this ‘caught his eye’ but reiterated that ‘there is still time’ to change the Fed’s stance on bond purchases. On the other hand, the Reserve Bank of Australia (RBA) intervened heavily to halt the increase in 3- and 10-year bond yields.
Oil on track ahead of the 5th OPEC + meeting; the increase in stocks was ignored
Crude oil prices soared ahead of Thursday’s OPEC + meeting, with key officials commenting on the global market’s state of affairs. At the meeting, Saudi Arabia, Russia and others will set their April quotas.
Analysts warn that unchanged production headlines at the OPEC level could mask the real increase in Saudi Arabia’s supply, which unilaterally made voluntary cuts in February and March.
It reached $ 60.84, up 1.8%, and rose 1.8% to $ 63.84. The American Petroleum Institute’s report on Tuesday of a shock increase in US stocks was ignored.
Government data will be available at the usual time.