President Biden unveiled a $7.3 trillion budget proposal on Saturday, aimed at convincing Americans he can manage the economy better than Donald Trump. The budget proposes raising the corporate tax rate to 28% and implementing a minimum 25% tax on those with over $100 million in wealth. It seeks to raise taxes on corporations and high-income earners to fund new programmes assisting lower-income households with housing and childcare costs. It would also allow the government to negotiate lower drug prices. To address economic concerns, Biden's plan includes reviving the child tax credit, funding childcare and housing initiatives, and providing paid family leave. However, the Republican-controlled House quickly rejected the proposal, citing "reckless spending" that is idealistic rather than realistic.

EQUITY

Major indices opened the week with a slight decline, dragged by tech but supported by the Dow. Moderna and BioNTech stocks rose on promising mRNA cancer treatment prospects, indicating expansion beyond infectious diseases. The stock market ended last week slightly down after a rollercoaster week, with tech giant Nvidia leading the decline. This week, investors are looking forward to the Consumer Price Index report, which is expected to grow at a slightly slower pace. Earnings reports from companies like Oracle and Adobe are also closely monitored.

GOLD

Gold prices closed slightly higher after surging to record highs last week, driven by higher speculative bets from hedge funds. This momentum buying has pushed gold above $2,200 an ounce, but some analysts are cautious due to the record high positioning of these speculators, which could change the wind any day. While there's potential for further gains, long-term bullishness hinges on renewed demand from traditional investors, like those holding gold ETFs.

OIL
Crude prices closed higher on the week's opening but stuck sideways as the market is waiting for key reports from OPEC and the IEA this week for clearer direction. Uptrend movement hinges on these reports showing stronger demand, while a hawkish tone from the Fed due to high inflation could push prices down, although a cut is promised within the year.

CURRENCY

The dollar index rose slightly on Monday due to short covering after Friday's two-month low and support from higher Treasury yields as the market looks ahead to Tuesday's U.S. CPI report, which will impact the odds of a Fed rate cut over the next few months. Meanwhile, the euro fell on dovish comments from ECB officials on potential rate cuts in spring, and the yen traded slightly lower given comments by officials of an impending BoJ rate hike.