Yazar: Geoffrey Smith
Investing.com – Jerome Powell predicts an increase in recruitment and economic growth, but still wants you to stay socially distant and continue wearing a mask. India’s pandemic problem is getting worse than bad, and the rupee and local stocks are in decline. On the other hand, Britain reopened its bar and secondary stores after crossing the basic threshold in the vaccination program. US stocks will fall before the big earnings start, after the Chinese Communist Party chose not to impose the harshest possible antitrust penalty Alibaba (NYSE 🙂 shares jumped. Microsoft (NASDAQ 🙂 is on the verge of its biggest acquisition since 2016.
What you need to know in financial markets on Monday, April 12:
1. Powell’s economic speech and 10-year bond auction
Fed Chairman Powell said in an interview with CBS’s ’60 Minutes’ program that the US economy is about to exit the Covid-19 hibernation.
“We feel that we are in a place where the economy is starting to grow much faster and job opportunities will be created faster. The outlook has greatly improved. This is the basic situation. “
Powell’s statements were shared the day before the Treasury’s 10-year bond auction. The tender will test the market’s ability to reconcile the expected growth spurt with still modest inflation expectations.
Saying that it is “smart” to maintain social distance and continue to wear a mask, Powell added that the epidemic is still a risk to the economy. The number of new cases in the USA has been on a steady increase over the past two weeks.
2.Alibaba jumped with relief over China’s antiterst penalty
Alibaba shares in Hong Kong soared after the company said it was sponging on a $ 2.8 billion antiterst penalty, the biggest legal concern it has ever faced.
The penalty for anti-competitive behavior towards traders in the main marketplace was equal to 4% of annual domestic income, below the maximum 10% permitted by law. Alibaba will also have to pay a hefty pay to ‘correct’ past behavioral mistakes.
This was enough to convince market participants that the company had largely pacified the ruling Communist Party after it became one of the main goals of a campaign that clearly aimed to cut the wings of the increasingly influential tech sector.
3.Stocks fall ahead of earnings period, big deal for Microsoft
US stocks will open lower after closing at record highs on Friday.
It was 33,601 with a 81 points drop and had minor losses.
Among the stocks that may be of interest is Microsoft, reported by Bloomberg and other channels, said to be in talks to buy AI software group Nuance for $ 1.9 billion – the acquisition is the company’s largest since LinkedIn (NYSE 🙂 five years ago. will deal. The diagnostic company Luminex (NASDAQ :), which will be received by Italy’s Diasorin for 1.8 billion dollars, will also attract attention.
The earning week will have a quiet start with Aphria (NASDAQ :).
4.India’s covid-19 crisis deepens (but the demand for gasoline is also rising)
The Indian rupee fell to an eight-month low as the country recorded record cases.
The Nifty 50 and Sensex benchmark indices were down 3.5%, their lowest since February. The dollar rose to over 75 rupees.
The numbers came at a time when the market was anxiously waiting for March inflation data. Annual inflation is expected to rise to around 5.4%.
However, this increase had a stimulating effect on oil consumption, and gasoline consumption rose to a four-month high in March as people turned to cars.
5. Let’s go to the bar
Better news is coming from the epidemic front in the UK. Secondary shops and bars and outdoor dining venues have reopened in response to the large drop in the number of new cases.
With the relatively rapid vaccination campaign where 32 million people, more than half of the population, had been vaccinated with at least one dose so far, new infection and death rates fell to the lowest level seen since September.
He recorded a significant pace in vaccination campaigns in Frnasa and Germany. France passed 10 million over the weekend. The EU has now vaccinated 21% of its population at least one dose. Germany is still on the way to a new quarantine. Chancellor Angela Merkel wants to adopt a new bill this week to authorize the federal government from the country’s states to combat the epidemic.