Good morning. US stock futures rose in Wednesday morning trading as investor sentiment got a boost from stronger than expected economic data coming out of China.

"Permabears create high-anxiety. But perhaps that's what some investors secretly want"

William Sherden

Top News

Biden says billionaires to pay more taxes

• US President Joe Biden said his upcoming budget proposal to Congress will feature higher taxes on billionaires, but will not break his promise of no tax increases for Americans earning less than $400,000 a year.

• Biden, under pressure from Republicans about the US debt limit, has vowed to cut the US deficit by $2 trillion over 10 years in his coming budget proposal.

China's economy shows signs of resilience

• China's economy is showing signs of an economic recovery with its manufacturing sector recording its most substantial improvement in over ten years, along with rebounding activity in services and a stabilizing housing market.

• According to China's National Bureau of Statistics, the country's manufacturing index rose to 52.6 in February, the highest reading since April 2012.

EU questions data transfer agreement

• The European Union data protection watchdog expressed privacy concerns about a draft decision from the European Commission which could enable a new data transfer agreement with the US.

• The European Data Protection Board said its concerns arise on certain rights of data subjects, onward transfers, the scope of exemptions, temporary bulk collection of data and the practical functioning of a redress mechanism.

In Other News

Cash...is actually king!

• For the first time in nearly two decades, certain low-risk securities are providing higher returns than a 60/40 portfolio of stocks and bonds.

• The yield on six-month US Treasury bills recently rose as high as 5.14%, the most since 2007, pushing it above the 5.07% yield on the classic mix of US equities and fixed income securities according to data from Bloomberg.

Vaccine maker survival in doubt

• After facing difficulties in developing and selling a Covid-19 vaccine, Novavax has issued a warning stating that it has significant concerns regarding its ability to continue operating through the next year.

• The warning came as the company reported a fourth quarter loss almost twice as wide as analysts had estimated.

Musk sets sights on AI competitor for ChatGPT

• Elon Musk has reportedly contacted AI researchers in recent weeks about developing an alternative to ChatGPT, the high-profile chatbot made by OpenAI.

• Musk co-founded OpenAI in 2015 to keep tabs on AI development and served as its chairman until 2018 when he stepped down amid concerns about a conflict of interest.

Key Economic Events

• Wednesday - No Major Economic News

• Thursday - Eurozone CPI M-o-M

• Friday - Fed's Bostic Discusses Research

Notable Briefs

• Got car repairs coming up? Here are 7 ways you can save big!

• These 5 things are always worth the money!

• Follow these 9 tips to save on your next travel adventure

• Was this forwarded to you? Sign up here.

• Want to advertise in Daily Market Briefs? Go here.