Mainland Chinese stocks were up by the early morning. The Shanghai Composite was down by 0.54% to 3,422.16. Hong Kong’s Hang Seng Index was down about 0.20% to 28,903.75.
Japan’s benchmark Nikkei average. Nikkei 225 is trading down 0.18 per cent at 29,080.06 on Tuesday, while the Australian Index S&P / ASX 200 fell 0.29 per cent to 7,025.71. South Korea’s Kospi was down by 0.28% to 3,207.91.
The FTSE MIB climbed up by 0.52% to 24,513.46 In the cash markets, the DAX futures Germany was trading 0.11% higher at 15,296.25. CAC 40 futures in France climbed up by 0.28% to 6,275.52, while the FTSE 100 futures in the U.K. rose by 0.35% to 6,963.08, at the time of writing.
In the U.S. on Wall Street, the Dow Jones Industrial Average closed 0.18% down at 33,981.57 the S&P 500 was up 0.22% to 4,189.30 and the Nasdaq 100 was up 0.87% at 14,138.78.
In the Forex market, GBPUSD fell 0.10% at 1.3882. The USDJPY was up 0.18% at 108.28. The USDCHF was up 0.21% at 0.9158. EURUSD was down 0.10% at 1.2071, EUR/GBP was up 0.07% at 0.8695, at the time of writing.
In the commodity market, U.S. Gold futures fell 0.03% at $1,779.70. Elsewhere, Silver futures fell 0.04% to $26.198 per ounce, Platinum fell 0.18% at $1,246.05 per ounce, and Palladium was down 0.14% at $2,928.50.
Brent crude oil was up 0.54% to $65.36 barrel while U.S. West Texas Intermediate (CLc1) rose 0.50% at $62.22.
In the Cryptocurrency Markets, BTCUSD is at $53,390.7 rose 1.91%, Ethereum at 2,492.18 up 1.60%, Litecoin at 247.940 up 3.82%, at the time of writing.
TOP STOCKS TO WATCH OUT TODAY:
AstraZeneca down 0.45% at 7,530.0, Apple Inc. up 0.30% at $134.72, Amazon up 2.04% at $ 3,409.00, TESLA Inc up 1.21% at $738.20, Barclays up 2.25% at 186.08, Microsoft up 0.15% at $261.55 , Daimler up 1.31% at 74.635.
U.S. states and local governments are raring to tap billions of dollars coming their way in new federal stimulus funding, but are anxiously awaiting guidance to determine whether items on their wish lists are allowed.
U.S. Treasury Department guidance is also expected to clarify states’ ability to cut taxes and may address using stimulus money to pay off debt.
The $1.9 trillion American Rescue Plan Act, signed by President Joe Biden in March, allocates $350 billion for states, municipalities, counties, tribes, and territories to help repair their coronavirus-damaged budgets and economies. The federal government has a tight deadline to start distributing the money.
“The clock is certainly ticking. They have to get the money out the door by May 10,” said Mark Ritacco, government affairs director at the National Association of Counties.
Unlike the $150 billion governments received under last year’s federal CARES Act, which was limited to pandemic-related spending, the new money can be used to replace revenue lost due to the pandemic, provide “premium pay” for essential workers, and to invest in water, sewer, and broadband infrastructure, according to the U.S. Treasury.
Governments have “tons and tons of questions” about eligible uses for the money including financing other capital improvements that were deferred due to the pandemic and parking stimulus funds in interest bearing accounts, according to Emily Swenson Brock, director of the Government Finance Officers Association’s Federal Liaison Center.
“There’s just this wide berth of interpretation in the (legislative text) and that’s why we’re a little anxious to see if the Treasury guidance makes limitations or if it allows for greater opportunity,” she said.
Brock added that several state legislatures are talking about using stimulus money to pay off outstanding debt, a move not addressed in the act.
New Jersey has identified bonds that could be retired in the next few years if the state “is afforded greater flexibility,” according to Jennifer Sciortino, spokeswoman for the state treasurer’s office.
“At this point, it is entirely unknown if the federal government will permit us to use funds to pay off existing debts,” she said.
Illinois Governor J.B. Pritzker wants to use stimulus dollars to take out the remainder of the $3.2 billion his state borrowed last year through the U.S. Federal Reserve’s Municipal Liquidity Facility to ease a cash crunch.
The act does not allow the money to be used for pensions or to subsidize new state tax cuts.
The latter prohibition sparked five lawsuits against the Biden administration by Republican attorneys general in several states. Ohio filed the first case on March 17, contending “Congress lacks constitutional authority to limit states’ taxing power in this manner.”
With the case still pending, the Ohio House of Representatives on Wednesday approved a 2% income tax cut totaling about $380 million over two years.
Bills have been introduced in 16 other states as of April 6 to cut personal or corporate income taxes, according to the National Conference of State Legislatures.
U.S. Treasury Secretary Janet Yellen has said nothing in the act prevents tax cuts and that further guidance would be forthcoming.
The German government has raised its growth forecast for this year to 3.5%, compared with the 3% growth it was expecting back in January, a source said, adding that the upward revision was justified by a stronger-than-expected fourth quarter.
The source added that the government expected Europe’s largest economy to expand by 3.6% in 2022.
The economy ministry declined to comment on the figures. The government is due to present its 2021 economic growth forecast on Tuesday.
Germany’s leading economic institutes said earlier this month they expected the gross domestic product to grow by 3.7% this year and 3.9% in 2022.
German business morale improved only slightly in April as a third wave of COVID-19 infections and a semiconductor shortage in the motor vehicle sector slowed a recovery in Europe’s largest economy, a survey showed on Monday.
Export-oriented manufacturers are currently benefiting from higher demand from China and the United States, whereas domestically-focussed services are suffering under extended restrictions to contain the third wave of COVID-19 infections.
TRADE SUGGESTION- BUY AT 1.2065, TAKE PROFIT AT 1.2095 AND STOP LOSS AT 1.2050.
TRADE SUGGESTION- Sell AT 1.2400, TAKE PROFIT AT 1.2360 AND STOP LOSS AT 1.2420.
TRADE SUGGESTION- SELL AT 0.9160, TAKE PROFIT AT 0.9100 AND STOP LOSS AT 0.9190.
TRADE SUGGESTION- BUY AT 15,300.50, TAKE PROFIT AT 15,400.50 AND STOP LOSS AT 15,250.50.
TRADE SUGGESTION- Buy AT 26.170, TAKE PROFIT AT 26.370 AND STOP LOSS AT 26.070.
TRADE SUGGESTION- SELL AT 53,500.50, TAKE PROFIT AT 52,500.50 AND STOP LOSS 54,000.50 .