High unemployment. Rising prices. They're a bad memory for Americans old enough to remember the 1970s - but they're also likely causing a few sleepless nights in the White House, as the United States' economic recovery from the unprecedented coronavirus recession hits some bumps. The jolts are dampening consumer confidence, ramping up inflation fears, and helping Republicans build their case against President Joe Biden and his trillions ambitious plans. As the 1970s show, high joblessness and rising prices the United States saw in April can be a potent political force. However, Support for Biden remains strong and U.S. equity markets remain near record highs.
China's industrial output growth slows in April, retail sales miss forecasts
China's factory output growth slowed in April from the jump seen in the previous month while retail sales missed analyst
expectations, indicating more pressure on the recovery in consumption. Industrial production grew 9.8% in April from a year ago,
slower than the 14.1% surge in March, but matching a consensus forecast by analysts from a Reuters poll. Retail sales rose 17.7%
year-on-year in April, much weaker than a 24.9% uptick expected by analysts and down from the jump of 34.2% seen in March.
Fixed asset investment increased 19.9% in the first four months from the same period a year earlier, versus a forecast 19.0% rise,
slowing from January-March's 25.6% increase. Private-sector fixed-asset investment, which makes up around 60% of total
investment, rose 21.0% in January-April, compared with a 26.0% jump for the first three months.
Premature to be envisaging second European stimulus plan: EU antitrust chief
The European Union must focus on its current 750-billion-euro ($910 billion) pandemic recovery package before envisaging further
stimulus, the EU's antitrust chief told Les Echos. "It's way too soon to be considering it," Vestager was quoted as saying in Les
Echos. "I find it a bit bizarre to be talking about a new stimulus plan that we are not sure we need, when we already have so much to
do." France has pushed for a more ambitious economic recovery plan than the one already outlined, although the 750 billion euros,
agreed last summer after the epidemic's first wave, has yet to be disbursed. French European Affairs Minister Clement Beaune, who
recently called for existing funds to be doubled, said on Sunday that Europe should consider more investment in areas such as
technology.
Dollar fights for footing as Fed minutes eyed
The 10-year government bond yield (interpolated) on the previous trading day was 1.78, -1.00 bps. The benchmark government
bond yield (LB31DA, 10.5 years) was 1.80, -5.00 bps. LB29DA could be between 1.83-1.87. Meantime, the latest closed US 10-year
bond yields was 1.63%, -3.00bps. USDTHB on the previous trading day closed around 31.36 Moving in a range from 31.36-31.42
this morning. USDTHB could be closed between 31.38-31.46 today. Meantime, The U.S. dollar found pockets of support in Asia on
Monday, but struggled to post gains, as investors are heavily positioned for it to fall further while Fed holds interest rates low and
U.S. trade and current account deficits grow.
Sources : Bloomberg, CNBC, Investing, CEIC
