Fed’s Powell. Vaccinations, monetary policy and fiscal policy creates brighter outlook

Feds Powell on IMF panel

  • Vaccinations, monetary policy and fiscal policy are creating a brighter outlook in the US
  • Wants to see a string of months like March jobs report
  • unevenness in recovery is a serious issue
  • global vaccination is a risk to progress we are making
  • There is a risk in the US if cases move back up from here. Any pickup and cases will slow the recovery

European shares end the session mostly higher

Italy’s FTSE MIB anexception

The major European shares are ending the session mostly higher. France’s CAC is at the highest level since 2007. The German Dax is up marginally but remains below the 15212 high close.

The provisional closes are showing:
  • German Dax, +0.1%
  • France’s CAC, +0.6%
  • UK FTSE 100, +0.7%
  • Spain’s Ibex, +0.4%
  • Italy’s FTSE MIB, -0.5%
In other markets as European/London traders look to exit:
  • Spot Gold is currently up $17.14 or 0.99% at $1754.82
  • Spot silver is up $0.28 or 1.14% $25.43
  • WTI crude oil futures are trading down $0.04 or -0.07% at $59.79
  • Bitcoin is up $1400 or 2.49% of $57,622
In the US stock market, the major indices remain mixed with the Dow down but the S&P and Nasdaq higher.  The S&P index reached a new all-time high at 4093.87 today
  • S&P index up 11.71 points or 0.29% at 4091.72
  • NASDAQ index up 116.8 points or 0.85% at 13805.70
  • Dow -23.32 points or -0.07% at 33423
In the US that market yields are lower but off their lowest levels.  The U.S. Treasury will auction off three, 10, and 30 year issues next week.
US yields are lower

US 10 year yield below 1.64%

Support at 1.631%

The 10 year yield has moved back below the 1.64% level.  Recall, the high going back to March 30 was at 1.774%.
Support at 1.631%
On the downside, the yield is between a swing area at 1.631% and 1.64%  A move below would be another step in the downward direction.

IMF communiqué: Global economy recovering faster than expectations

IMF communiqué

The IMF steering committee communiqué is being released. Highlights:
  • Global economy recovering faster than expected
  • prospects are highly in certain and uneven across countries
  • There are financial vulnerabilities that could cause risks if global financial conditions tighten swiftly
  • where appropriate, monetary policy should remain accommodative
  • We will strengthen cooperation to durably exit crisis.

Nikkei 225 closes lower by 0.07% at 29,708.98

A mixed session for Asian equities on the day

Japanese stocks may be plagued by virus fears, with the Topix also seen down 0.8% today, but Asian stocks elsewhere are faring better on the session.
Chinese equities are trading higher, with the Hang Seng up a little over 1% and the Shanghai Composite also marginally higher by 0.4%, mirroring the more positive mood reflected in US futures ahead of European morning trade.
S&P 500 futures are up 0.5%, Nasdaq futures up 0.9%, and Dow futures up 0.3%.
That is setting up a more positive open for Europe as well, with futures trading higher.

Federal Reserve Chair Powell is speaking on Thursday 08 April 2021

Fed’s Powell is taking part in a panel discussion, a Q&A, on the global economy

  • at the IMF Spring meeting
  • begins at 1600 GMT
Powell has been dovish over and over again in recent appearances. The Fed approach now is to base changes in policy on outcomes, not outlooks, and the outcome they are focused on right now is inflation sustainably, not transiently, above 2%.
Also speaking on Wednesday from the Fed are:
  • 1500 GMT St Louis Fed head Bullard is discussing the US economy and monetary policy in a Q&A session
  • 1800 GMT Minneapolis Fed head Kashkari discusses the economic outlook in a Q&A

Fed's Powell is taking part in a panel discussion, a Q&A, on the global economy