US $1.9 trillion economic stimulus plan finally implemented

On the morning of March 6, the US Senate voted 50:49 to approve Biden’s $1.9 trillion economic rescue plan. On March 10 local time, the house of representatives of the United States voted to pass the US $1.9 trillion economic stimulus plan passed by the Senate. On March 11 local time, US President Biden signed the US $1.9 trillion economic stimulus plan at the White House, marking the formal entry into force of the bill. What will be the impact of the US economic stimulus plan on the macro economy and what will be the future of the zinc market?

Zinc price trend

According to the data monitoring of business news agency, since March 7, the price of zinc has been fluctuating and rising. From March 11 to March 15, the price of zinc has continued to rise for three consecutive trading days. Except for the slight drop in the price of zinc on March 10, the price of zinc has continued to rise in a week. As of March 15, the average price of zinc was 22120.00 yuan / ton, which was significantly higher than that of 21190.00 yuan / ton on March 7, with an increase of 4.39%.

Global stock market soars

Boosted by the US $1.9 trillion stimulus plan, the US stock market continued to climb in recent days. As of March 15, us time, the Dow Jones index rose for four consecutive trading days. Affected by the rise of the US stock market, the world’s major stock markets also followed the rise. The positive expectation of the global macro-economy is obvious, which is good for the zinc market in the future.

Asian stock market trend on March 15

As can be seen from the K-line chart of the Shanghai stock index, affected by the landing of the US economic stimulus plan, the Shanghai stock index rose. However, since the US Senate passed the stimulus plan on March 6, the Shanghai stock index fell sharply for three consecutive trading days. After that, with the landing of the US stimulus plan, the Shanghai stock index rose continuously, but still fell slightly on March 15. The performance of the Shanghai stock index reflects that the Chinese market lacks confidence in the effect of the US economic stimulus plan. It is worried that China’s a shares may be affected by the US dollar spillover effect. The global inflation is warming up, and the global inflation expectation is rising, which will inevitably increase the further surge of international commodity prices. However, the rapid surge of these commodity prices will also bring certain impact on China’s economic recovery It also has a negative impact on global economic recovery. The global economic recovery is uncertain in the future, and the global zinc market demand is generally warming up, but the increase may be difficult to meet expectations.

Analysis summary and Prospect

Bai Jiaxin, an analyst at business news agency, believes that: the US economic stimulus plan has been implemented, and its impact on the global economy is continuing to ferment. Global inflation expectations are increasing, commodity prices are expected to rise, and zinc market is following the rise. The global economy is recovering slowly, and zinc market demand is expected to rise. However, affected by the US economic stimulus plan, the global economic recovery speed is uncertain, and zinc market demand is increasing Rising expectations may be reduced, the overall zinc market still has a rising range in the future, but the rising power of zinc market is insufficient, and there is no sustained support for the rise of zinc market. Zinc market is expected to rise slightly in the future.