Biden's Plan and Its Price, Numbers from ADP and OPEC + Meeting

1 avr. 2021

Yesterday Biden presented the US development plan for the next 8 years. It will cost taxpayers more than $2 trillion. Considering the price of the issue, the key question is where to get the money from for its implementation. Biden's answer: the tax hike will "fully pay off" the plan, a corporate income tax that will rise from 21% to 28%.

So, on the one hand, the news is undoubtedly positive for the stock market. On the other hand, it's very negative.
Economic data from the US also aroused mixed feelings yesterday. The numbers from ADP seem to be great: 517K. But below the forecast of 550K. But the numbers for home sales in the USA were frankly not encouraging. At the end of February 2021, only 1.03 million homes were listed for sale, which is 29.5% less than in February 2020. This is the largest annual decline on record and the lowest supply on record.

But yesterday there was a reason for joy in the cryptocurrency market. Goldman Sachs said the bank is close to offering bitcoin and other digital assets to its asset management clients.

The main event for today, and for the oil market - for the whole week - is the OPEC Plus meeting results announcement. The current consensus is that nothing will change this month. At least the situation in the world hints at this (the next round of the pandemic again hits demand and in such conditions it's more than strange to increase production). This is indirectly evidenced by the decline in forecasts for the growth rate of oil demand in 2021 by OPEC. Such a decision is unlikely to provoke a strong rise in oil prices. But if, suddenly, they decide to increase production, sales in the oil market cannot be avoided today.