Signed! The US giant’s economic rescue plan fell sharply, tech stocks picked up a fierce offensive, US stocks hit a new record



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Original caption: Signed! US Pangda’s economic bailout plan fell, tech stocks rebounded from a fierce offensive, and US stocks hit a new record high.

Summary

[¡Firmado! El enorme plan de rescate económico de Estados Unidos cayó con fuerza, las acciones de tecnología recuperaron una feroz ofensiva y las acciones de Estados Unidos alcanzaron nuevos máximos]US President Biden signed a $ 1.9 trillion economic rescue plan at the White House on the 11th. US actions ushered in a carnival. The US stock market S&P 500 and the Dow Jones industrial index set all-time closing highs on Thursday and the Nasdaq closed more than 2% higher. (Shanghai Securities News)

US President Biden signed a $ 1.9 trillion economic rescue plan at the White House on the 11th.

US stocks ushered in a carnival: US Stock Market S&P 500 Index and Dow JonesindustryAll indices set closing record highs on Thursday, and the Nasdaq closed more than 2% higher.

However, industry insiders believe it is necessary to see if the huge economic rescue plan will increase the debt pressure of the federal government. The outside world is also concerned about how the fiscal stimulus will boost the economy. Will it cause inflation to spike or get out of control?

  US Tech Stocks Made a Big Counterattack

Emergency launched in response to the new corona epidemicunemploymentThe relief plan will expire March 14, and Biden has proposed a $ 1.9 trillion financial aid plan. On February 27, the initial version of the plan was approved in the House of Representatives. On March 6, the Senate approved a revised economic rescue plan. On the 10th, the House of Representatives approved the final version of the plan.

According to the Xinhua news agency, Biden said this “landmark legislation” with a total value of $ 1.9 trillion provides a pillar for rebuilding the US economy and will provide the American people with a “fighting chance.”

The main content of the plan includes:Unemployed benefitsThe additional benefits will be increased by US $ 300, the scope of unemployment benefits will be extended and the applicable period will be extended until September 6; about US $ 350 billion will be injected into state and local governments; around 170 billion US dollars will be foreseen for the reopening of schools.

Driven by this, the top three New York stock market indices were up across the board on the 11th. Among them, the Dow was up 0.58%, the S&P 500 was up 1.04% and the Nasdaq 2.52%.

Among them, the S&P 500 Index hit a new high and the Dow broke a record for the fourth consecutive trading day. After falling earlier this week, the Nasdaq, which is dominated by tech stocks, is now less than 5% from its all-time high on February 12.

By sector, S&Pinformation technologyThe sector grew strongly by more than 2%, and the industrial services and communications sectors reached record levels.Public UtilitiesThe plate declined slightly.

Star tech stocks rose overall, Facebook,NetflixAnd Google Motherthe companyThe alphabet went up more than 3%,MicrosoftIt rose more than 2%,AppleAmazonIt went up more than 1%.

  The European market is good too

There is also good news on the European market.

Based on a comprehensive judgment on the financing conditions and the inflation outlook for the euro zone, the European CentralBankOn the 11th it was decided to continue with the emergency asset purchase plan with a total scale of 1.85 trillion euros, and to use the flexibility of the plan to significantly increase debt purchases in the second quarter of this year.

At the same time, the European Central Bank raised its economic growth forecast for the Eurozone to 4% in 2021. It is expected to grow by 4.1% and 2.1% in 2022 and 2023, respectively. It also raised its inflation forecast in 2021 to 1.5%, and it is expected to be 1.2% and 1.4% next year.

  European Central Bank President Lagarde said that favorable financing conditions in the euro zone have beenWarrantyUnder the premise, the emergency asset purchase plan does not need to be fully utilized. If financing conditions deteriorate, the European Central Bank will re-scale emergency bond purchases when necessary.

In response to the impact of the new corona epidemic, the European Central Bank announced in March last year that it would implement a highly flexible emergency asset purchase plan. Since then, the total scale of bond purchases has expanded to € 1.85 trillion. The plan will last until at least March 2022.

European central bankinterest rateAfter the resolution was announced, Italy and GermanyNational debtpriceRising, Italy’s ten-year periodTreasury bond yieldDown 4Base point0.63%.

European equity markets also ushered in general gains. The average price index of the London Stock Exchange “Financial Times” of 100 shares closed on the 11th at 6736.96 points, an increase of 0.17%. The CAC40 index of the Paris Stock Exchange in France closed at 6033.76 points, an increase of 0.72%. The DAX index of the Frankfurt Stock Exchange in Germany closed at 14,569.39 points, an increase of 0.20%.

  A domino effect in the financial market

Affected by factors such as the approval of the US economic rescue plan and the political actions of the European Central Bank, the US dollar index fell on the 11th.

In addition, the US $ 24 billion over 30 yearsPublic debtThe results of the latest auctions did not reignite market concerns. Last month’s seven-year bond auctions were weak, boosting yields and shaking the market.

Measure the US dollar against the top sixbadgeThe US dollar index fell 0.41% that day and closed at 91.4316 at the end of the foreign exchange market.

And new yorkProductThe most active April gold futures price on the stock gold futures market closed at $ 1,722.6 an ounce on the 11th, an increase of 0.05%. Spot gold once hit its highest level since March 3 at $ 1,734.55.

InternationalOil priceAchieves strong growth New YorktradeThe price of light crude oil futures for April delivery closed at US $ 66.02 per barrel on the 11th, an increase of 2.45%; London Brent crude futures for May delivery closed at US $ 69.63 per barrel, an increase of 2.55%.

  The future inflation situation is cause for concern

Although the huge economic rescue plan may help accelerate the recovery of the US economy, the financial pressure it puts on the US government remains a cause for concern.

  According to estimates by the US Congressional Budget Office, excluding the plan, the US federal fiscal deficit may reach $ 2.3 trillion in fiscal year 2021 (as of October 1, 2020). The plan may further increase the federal fiscal deficit this fiscal year by $ 1.16 trillion. In fiscal year 2020, due to the introduction of a large-scale economic relief bill, the US federal fiscal deficit reached a record $ 3.1 trillion.

Additionally, industry insiders remain concerned about the future inflation situation.

Jiasheng Group SeniorAnalystJOE PERRY told a Shanghai Securities News reporter that in the context of US debt settlement and rising inflation expectations, the current focus from all walks of life is: how will fiscal stimulus boost the economy? Will it cause inflation to spike or get out of control?

He said the reason for this concern is that after the financial crisis, quantitative easing (QE) still does not help inflation to rise dramatically, and the risk of deflation is more prominent. But this time, there are not only QEs in the major developed countries, but also a fiscal stimulus that is extremely radical and easier to promote inflation. Therefore, the future inflation pattern has attracted global attention. The annual rally in copper prices above 100% and the High US bond yields are even more inflationary – the epitome of expectations.

However, Cheng Shi, Chief Economist at ICBC International, and Wang Yuzhe, Senior Economist at ICBC International, recently wrote an article in which economics and financeChangeIt is still in the “great thunder and little rain” stage:

First, the current structural characteristics of real inflation are obvious and the overall pressure for the whole year is not great compared to single inflation.supplyWith shocks and inflation expectations generally on the rise, the overall strength of aggregate demand will be more decisive;

Second, the delicate race to get rid of the epidemic and the central bank’s water harvesting will dominate the recovery process and the direction of policy in the second half of the year, although the US fiscal stimulus, which is suspected to be overweight excessive, will help promoteOutput gapHowever, the true peak of inflation in developed economies will continue to lag far behind the endogenous restoration of the economy;

Third, the inflationary pressure caused by the reestablishment of aggregate demand will determine the pace of the central bank’s discretionary decision.macropoliticalIn the environment, we remain cautiously optimistic about the market as a whole, but we must be on the lookout for the one-time tightening pressure brought on by the “thunder” policy warning under the gradual “raindrop”.

(Source: Shanghai Securities News)

(Editor in charge: DF398)

I solemnly declare: The purpose of this information is to spread more information, and it has nothing to do with this booth.

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