The US market dipped a bit yesterday, when the Federal Reserve announced that it would maintain a super-soft monetary policy. Dow Jones, Nasdaq and S&P 500 went down by 0.5%, 0.3% and 0.1%, respectively.
Meanwhile, Asian markets resumed growth, with Japan and China indices gaining 0.3% this morning.
Going back to the Fed, the central bank said it will maintain interest rates at 0-0.25% and continue its monthly $ 120 billion bond purchases. It also pointed out a recent increase in inflation, which it has been aiming for.
Another news is Biden's new $ 1.8 trillion spending plan to support families. According to his proposal, this would be financed by raising taxes on wealthy Americans.
And today, the US will publish a report on 1st quarter GDP, which analysts expect to have reached 6.8%. But in case of a weaker-than-expected data, a correction in the market may take place.
Meanwhile in Europe, the ECB revised its macroeconomic projections for the better, saying that the EU economy will recover faster the next quarter. However, downside risks will remain.
The European Parliament also approved a trade agreement for Brexit, but the pound hardly reacted to the news.
With regards to the world's epidemiological situation, another surge in COVID-19 infections was recorded. Total cases hit a new high of 887,000, mainly due to India listing 380,000 new patients. As for Europe, Turkey, France and Germany jotted down 40,000, 30,000 and 25,000 new cases, respectively.
On the bright side, world oil prices increased yesterday as excess reserves started to disappear. WTI rose by 0.5% and hit $ 64.05. Today, it is projected to range around $ 62 - $ 66.
Brent also jumped by 0.5%, trading at $ 67.60. It is expected to cost around $ 65.00 - $ 69.00 today.
Obviously, this surge in prices is due to global economic recovery and improving oil consumption.
Important: Pay attention to the upcoming report on US Q1 GDP, which will be published today at 12:30 GMT. The data may seriously shake the market.
