U.S. stocks are starting the quarter in positive territory after President Joe Biden rolled out his $2.3 trillion infrastructure plan. Biden described it as a “once-in-a-generation investment in America” in a speech on Wednesday.
Citi foreign exchange strategists noted that the DXY benchmark — measuring the dollar’s value against a basket of currencies — is up 4% since mid-February and expected the U.S. dollar rally to continue, citing the rapid U.S. COVID-19 vaccine rollout in the near term and higher fiscal stimulus over the medium term.
Stage 1 saw risk appetite drop as markets priced in a global slowdown, with the dollar becoming a safe haven currency, while in stage 2 risk appetite recovered as the economic outlook improved and the dollar dropped back. The team said this was a “simplistic strategy” based on previous periods when the dollar was rising alongside an global economic expansion and noted other themes, such as rising bond yields and value rotation that may deliver contradictory messages. “Nevertheless, our analysis should give a good feel for how investors might integrate a rising U.S. dollar into equity portfolios,” Citi said.
Chinese electric-vehicle makers Nio NIO, +1.74% and XPeng XPEV, +1.21% both reported big gains in first-quarter deliveries early on Thursday.
Canada Canada Latest News, Canada Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: CNBC - 🏆 12. / 72 Read more »