The Biden administration's USD 1.9 tn stimulus plan could propel the global economy back to pre-covid levels “if US domestic sensitivities over trade can be contained,” analysts tell the Financial Times. The White House is likely to come under pressure to place new curbs on imports, as his stimulus bill triggers a surge in new demand for overseas imports — particularly Chinese goods, which Allianz says will be the largest recipient of the USD 360 bn of stimulus money it estimates will be spent on imports. But if policymakers ignore the growing concerns about the country’s widening trade deficit, the Biden stimulus could produce export-driven growth around the world.

Increased liquidity and positive earnings prospects are likely to lead to a “buyback binge,” as companies with strong, liquid balance sheets look to prop up their stock prices following a plunge in buybacks in 2020, analysts tell Bloomberg. Buybacks among US companies surged 28% q-o-q in 4Q2020 to hit USD 120 bn in a spree that saw more than half of S&P 500 companies repurchasing stock for the first time since the covid crisis hit. “When you see cashflow accelerate, you see buybacks follow shortly thereafter,” said Gina Martin Adams, chief equity strategist for Bloomberg Intelligence.

GLOBAL IPO WATCH-

• US cryptocurrency exchange Coinbase has delayed its listing on the Nasdaq to April after its plans to go public in March failed to materialize, sources told Bloomberg without disclosing further information.
• German luxury auto company Porsche is open to an initial public offering, should parent company VW agree, Bloomberg reports, citing CEO Oliver Blume who considers it an “interesting” option.

The EGX30 fell 1.1% yesterday on turnover of EGP 696 mn (52.8% below the 90-day average). Regional investors were net sellers. The index is down 0.4% YTD.

In the green: Eastern Co. (+2.0%), Orascom Investment (+1.6%) and Orascom Financial (+1.0%).

In the red: GB Auto (-5.2%), Ibnsina Pharma (-4.7%) and Heliopolis Housing (-4.2%).

Asian markets are mixed this morning, with Japan’s Nikkei and Hong Kong’s Hang Seng in the red and China’s Shanghai and Korea’s Kospi in the green. Futures point to the Dow and S&P opening in the red while Nasdaq still has a chance to start the week off in the green. Toronto and much of Europe will also open in the red later today.