Grab’s SPAC deal, US CPI and long bond sales, warning from CDC – What’s happening in the markets? By Investing.com


© Reuters.

Yazar: Geoffrey Smith

Investing.com – Southeast Asia’s car hailing company Grab is preparing to sign the largest SPAC (merger-to-merger partnership) deal ever. US March inflation data will be explained by the knock-on effect of the 30-year Treasury bond sale and possible reactions from at least four Fed officials. A senior US health official has called for Governor Gretchen Whitmer to re-apply quarantine in Michigan. Oil bounced over $ 60 ahead of OPEC’s monthly report and API stock data.

Here’s what you need to know in financial markets on Tuesday, April 13th.

1. Grab to break SPAC record

Overtaking Uber (NYSE 🙂 in one of the world’s major growing markets, southeast Asian food delivery company Grab will go public with the biggest deal ever, through SPAC.

Grab will merge with Altimeter Growth Capital worth $ 40 billion and receive $ 4.5 billion through a mechanism called PIPE (private investment in public capital). AGZ rose 7.5% ahead of the market.

A day before the news, the SEC warned that SPACs may need to change the way they calculate warrants.

Also, one day before Dubaş signed an agreement with GM-backed Cruise for a 4,000 autonomous driver taxi. Cruise is also supported by Honda, which recently introduced the world’s first car with ‘level 3’ autonomy.

2. CPI data will be announced, there may be reaction from bond buyers and Fed officials

The inflation rate will exceed the Fed’s medium-term target for the first time since the outbreak. US CPI data for March will be shared at 15.30.

Headline CPI is expected to rise from 1.7% in February to 2.5%. The collapse in oil prices seen a year ago is beginning to show its effect on annual data. The core CPI excluding food and energy prices will rise from 1.3% to 1.5%.

The Fed is constantly warning against reading too much for the inevitable increase in annual rates due to base effects. Fed’s Mary Daly, Patrick Harker, Esther George and Raphael Bostic are also likely to repeat such messages.

Even so, the figures will create an interesting basis for the Treasury’s 30-year bond auction. Monday’s 10-year sales were greeted in a relatively calm manner. Yields increased only 2 basis points to 1.69%.

3.Stores will rise, at 14-month low

While the first quarter earnings period is expected to begin, US stocks continue to operate in a calm mode.

Up 70 points, it gained slightly smaller and only 0.1% gains. S&P Vix futures, Wall Street’s ‘fear gauge’, fell to 17.92, the lowest since February last year.

Stocks that may be of interest include Nvidia (NASDAQ 🙂 and Intel (NASDAQ :). The market continues to digest Nvidia’s move to make its own data center processor and news of its new partnership with Amazon (NASDAQ 🙂 Web Services. Fastenal (NASDAQ 🙂 will share its report before the opening.

4.CADC chief urged Michigan be shut down

Rochelle Walensky, President of the Center for Disease Control and Prevention (CDC), called for a quarantine imposition for Michigan Governor Gretchen Whitmer to contain the recent increase of Covid-19 cases.

Whitmer has been pressuring the federal government to expedite vaccine deliveries to his state recently, but Walensky on Monday argued that even this would not be enough to flatten the skyrocketing infection curve, with people enjoying the freedom they regained. Michigan’s rate of infection is at the high levels it saw last winter.

The US infection rate, measured on the basis of a seven-day moving average, increased 27% from a month earlier low as states loosened restrictions. This is happening despite the acceleration of the US vaccination program, which broke a record with 4.6 million people on Saturday.

5.Oil high ahead of OPEC report and API

In an environment of geopolitical turmoil, before two important reports, it again rose above $ 60.

OPEC will share its monthly report on the petroleum market and the American Petroleum Institute (API) weekly crude oil and fuel stock report.

WTI was up 1.0% to $ 60.28, up 1.1% to $ 63.95.

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