Wyllian Capucci
29/07/2021
Two fronts
President Joe Biden’s economic agenda was shot in the arm on Wednesday,when the Senate voted to start work on the $550 infrastructure projectbillion and Democrats put their weight on a budget resolution morewide. The 67-32 procedural vote in the Senate is a good indication of the infrastructure packagecan pass the chamber early next week, with cryptocurrency taxes apossible source of funding. A potentially more difficult path awaits thebudget resolution, focused on priorities like climate change, codetax, health and immigration. Senate Budget Committee Chairman BernieSanders said he has the votes, but Arizona Democrat Kyrsten Sinema has complicatedthings by saying it wouldn’t support spending $3.5 trillion on the package.
Getting closer
The Federal Reserve is getting closer to withdrawing some of its massive support for the economyof the US, although there is still a long way to go. President Jerome Powellconveyed that message and more at a press conference on Wednesday afterlawmakers kept interest rates close to zero and maintainedasset purchases at $120 billion a month until “substantial progress” isdone in employment and inflation. The Fed also repeated the language that the increase ininflation reflected “transitory factors”, a sentiment echoed by the Secretary of Commercefrom the US, Gina Raimondo, in an interview on Wednesday. The S&P 500 index ended thesession with little change and Treasury yields fell.
Tokyo wave
US Pole Vault Sam Kendricks, world champion quoted for a medalat the Tokyo Olympics, tested positive for coronavirus and will no longer compete in thegames, as the worst virus outbreak has ever hit the host country. Tokyo announced 3,865 newcases on Thursday, the third record in two days, while the daily infection ratenational level also rose to a record 9,576 the day before. Meanwhile, in theMissouri, where the delta virus variant has caused an increase in Covid-19 cases,doctors and nurses are seeing patients who are younger and seem to get worsefaster than ever. Apple Inc. and Walt Disney Co. have restored the policies ofmask
Rise of markets
Global equities rose as investors took comfort in thepositive updates on earnings and the Fed’s message that the stimulusstill has a long way to go. Overnight, the MSCI Asia Pacific Indexjumped 1.7%, while Japan’s Topix index rose 0.4%. In Europe, the Stoxx 600 Indexrose 0.3% at 6:28 am, Brasília time. The S&P 500 futures were modestlyhigher, the 10-year Treasury yield was 1.26% and oil extended thegains from a two-week high. Bitcoin traded around $40,000,holding this week’s recovery
Coming
Investors receive initial unemployment insurance claims and GDP numbersat 9:30 am, with the last showing that the economy grew at a rapid pace during the second quarter, fueled by vaccinations, incentives and business reopening. Othergigantic earnings day brings results from Amazon.com Inc., Mastercard Inc., ComcastCorp. and Merck & Co., among many others
Source:https://wintrademarkets.com/
