In recent weeks, there have been mixed messages from China’s central bank; reports have signaled the potential of both more direct measures and a tighter approach as the economy recovers. With the U.S.-China relationship falling apart at the seams, news of China’s stimulus boosted the Shanghai Composite index by 2.34% overnight.
U.S. benchmarks are paring overnight weakness and heading into the open near unchanged. The S&P 500 index is 1% from its February 20 record and failed to achieve a new swing high yesterday by half a point before softening into the close.
U.S. benchmarks are pointing to modest overnight gains after President Trump announced 4 executive orders over the weekend to extend unemployment benefits and defer payroll taxes. China is making waves at the onset of the week after arresting Jimmy Lai, a wealthy Hong Kong media mogul, on suspicion of collusion with foreign agents.
Nasdaq-100 futures closed at a fresh record high, and tech stocks accounted for the S&P 500’s resilience against one of the most famous technical levels in history; the scene of the crime gap close from February 21.
The People’s Bank of China said this morning that stimulus in the 2nd half of the year will be more targeted and flexible. Risk-assets then did what they’ve become accustomed to on stimulus news, rally.
Apple, Amazon, Facebook, and Alphabet slugged a grand slam after the bell yesterday. Premarket, the behemoths are +7%, +5%, +6% and unchanged respectively after beating top and bottom-line expectations.