Yazar: Geoffrey Smith
Investing.com – Fed’s latest meeting minutes to be released. Robert Kaplan, Tom Barkin and Charles Evans will make their assessment of the improving economic outlook. The country’s currency fell to a four-month low after the central bank of India postponed the rate hike due to record Covid-19 infections. As stocks continue to consolidate, oil is also struggling before US stock data. And Coinbase sheds light on business figures before direct listing in New York.
Here’s what you need to know in financial markets on Wednesday, April 7th.
1. Fed minutes and speakers, trade data
By sharing the minutes of the last policy meeting, the Fed will reinforce the message from the press conference that Chairman Jerome Powell was too dovish. They may contrast with the increasingly bright outlook for the US: The IMF has increased US growth from 5.5% to 6% this year.
In addition, Richmond and Chicago Fed Presidents Thomas Barkin and Charles Evans will speak. March trade data may also provide a new indicator of the strength of US demand.
On the other hand, Dallas Fed President Robert Kaplan said in an interview with the Wall Street Journal that he expects growth to be 6.5% and the unemployment rate to be only 4% by the end of the year, but warned that it is still too early to withdraw the monetary incentive.
2.Covid-19 surge stopped RBI, hit the rupee
The rupee fell to a four-month low after the Bank of India (RBI) lowered its cash reserve rate in its last policy meeting.
Although inflation rose to 5% last month, the RBI did not change the basic rates.
The Indian economy is grappling with a new wave of Covid-19. The seven-day average for new infections broke a new record on Monday, while the seven-day average daily death toll reached its highest level since December.
India responded to this increase by accelerating its own vaccination program, albeit at the cost of restricting exports to countries such as the UK.
3. Exchanges will open mixed, consolidation continues
US stock markets will be opened mixed. Consolidation is under way, which started on Tuesday and implies that the latest incentive checks will not directly affect the stock market.
It rose less than 0.1% while it rose less than 0.1% and 0.2%.
The earnings calendar is calm; they only have earnings from Simply Good Foods, Lamb Weston and RPM International (NYSE :). Other stocks that may be of interest include Amazon (NASDAQ :), which has signaled CEO Jeff Bezos’ support for President Biden’s plans to increase corporate income tax, and Samsung (KS :), which announced a 44% increase in operating profit for the last quarter in the Asian session.
4. Coinbase’s first quarter figures and guide
Coinbase, the cryptocurrency trading hub, announced its expectations for the first quarter results ahead of the direct quotation scheduled for this quarter.
The company said it had a higher revenue of $ 1.8 billion in the first quarter of 2021 than the whole of 2020, but surprised with net profit expectations of $ 730-800 million. While even the lower end of this range indicates a good operating margin, its breadth is a reminder of the volatility in the company’s business.
The company expects transaction volumes to slow down for the rest of the year. Its baseline metric expects monthly transaction user (MTU) to average 5.5 million – was 6.1 million in the first quarter. There are bear and bull scenarios that say the MTU could be between 4 and 7 million.
5.Oil struggles under $ 60, eyes on EIA stock data
Crude oil prices continue to struggle below $ 60, following OPEC + ‘decision to increase production to over 1 million barrels per day in the second quarter. Feelings took a hit due to the Covid-19 outbreak in India, South America and Europe.
It reached $ 59.88, up 0.9%, and rose 1.1% to $ 63.08.
US government stock data for the past week will be released today. A drop in stocks of 1.436 million barrels is expected.