Global growth prospects rise despite risks By ZHAO HUANXIN in Washington and CHEN JIA in Beijing | CHINA DAILY/Xinhua | Updated: 2021-04-01 07:12 Tourists gather at the downtown area of Shanghai. [Photo by WANG GANG/FOR CHINA DAILY]
Projections for recovery are brightening, but uncertainties require preparations
Global economic organizations have issued brighter projections for 2021 s recovery, led by the world s two largest economies, thanks to accelerated progress in COVID-19 vaccinations and large-scale stimulus. On Wednesday, however, economists said measures should also be prepared for uncertainties.
China is leading the economic recovery in the region encompassed by the Association of Southeast Asian Nations plus China, Japan and the Republic of Korea, or the ASEAN+3 , and its projected growth rate in 2021 was revised upward to 8.7 percent from 6.1 percent by a regional multilateral economic organization.
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NEW YORK (Reuters) - Global equity markets surged on Thursday, with U.S. and European benchmark indexes hitting record highs, as the strongest manufacturing data around the world in decades and a drop in bond yields drove investor optimism.
FILE PHOTO: The front facade of the New York Stock Exchange (NYSE) is seen in New York City, U.S., March 29, 2021. REUTERS/Brendan McDermid
U.S. President Joe Biden’s sweeping $2.3 trillion plan to rebuild America’s crumbling infrastructure added to the enthusiasm for risk assets, as did accelerating vaccine rollouts.
The dollar fell, easing off nearly three-year highs in the first quarter, while U.S. crude futures rose more than 4% after the Organization of the Petroleum Exporting Countries and allies agreed to start easing production cuts in May.
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NEW YORK (Reuters) - The U.S. dollar’s share of currency reserves plunged in the fourth quarter last year to its lowest since 1995, International Monetary Fun (IMF) data showed on Wednesday, but some analysts said the drop was due in part to valuation adjustments.
FILE PHOTO: U.S. one dollar banknotes are seen in front of displayed stock graph in this illustration taken February 8, 2021. REUTERS/Dado Ruvic/Illustration/ File Photo
Global reserves, which are reported in U.S. dollars, are assets of central banks held in different currencies used primarily to support their liabilities. Central banks sometimes use reserves to help support their respective currencies.
China’s private PMI expands at slower pace, recovery intact Rising input costs cloud outlook for some Asian factories
TOKYO, April 1 (Reuters) - Asia’s factories stepped up production in March as a solid recovery in global demand helped manufacturers move past the setbacks of the pandemic, although rising costs are creating new challenges for businesses in the region.
A series of upbeat factory surveys released on Thursday reinforce market optimism that vaccine rollouts, as well as strong growth in global powerhouses like the United States and China, will help economies emerge from their sharp downturns of 2020.
Japan and South Korea saw factory activity expand in March thanks to solid demand at home and abroad, purchasing manager indexes’ (PMI) showed, offering relief to policymakers facing pressure to speed up a patchy recovery.
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NEW YORK (Reuters) - The dollar fell on Thursday, consolidating recent gains that pushed it to nearly three-year highs during the first quarter, but the outlook remained upbeat in the wake of improving economic prospects backed by the Biden government’s more than $2 trillion stimulus plan.
FILE PHOTO: U.S. One dollar banknotes are seen in front of displayed stock graph in this illustration taken, February 8, 2021. REUTERS/Dado Ruvic/Illustration
Investors are now looking to Friday’s non-farm payrolls report to confirm their positive view on the dollar and the economy.
The dollar gained 3.6% against a basket of six currencies in the first three months of the year, its best quarterly performance since June 2018, with investors betting on a swift and robust economic recovery.