Economic Outlook: Changing times

Asian and European markets turned mostly higher Monday, buoyed by stimulus spending in China and a general shift from gloomy sentiment.

In Asia, the Nikkei 225 was down slightly, off 39 points, while the Hang Seng index in Hong Kong rose 2.95 percent to 14,901.41. The Singapore Straits Times pushed ahead 2.64 percent to 1,876.77, while the S&P/ASX in Australia gained 1.44 percent to 3,671.60.

European markets also gained with DJStoxx 600 up 2.20 percent, the FTSE 100 in London up 1.48 percent, the DAX 30 in Frankfurt up and the CAC 40 in Paris up 1.82 percent.

Under these numbers, China reported new loans and car sales soared in March, compliments of government intervention. In Japan, a proposed $154.4 billion stimulus package combines tax breaks, allocations for healthcare and child care and incentives for consumers to go green with purchases of energy efficient cars and appliances.

U.S. investors return from an Easter holiday looking at a quickly shifting investment landscape. As corporate reports continue to flood in this week, they may be viewed as a nagging reminder of a painful period, more than a sign of things to come.

Large U.S. banks are predicted to show profits. In the midst of a sharp reduction in travel, U.S airlines are forecast to profit by $100 million this year.

But, similar to a passing natural disaster, what is left is for investors to survey the damage from the past year, which is, admittedly, extensive.

The Wall Street Journal reported Monday that healthcare, where job opportunities have grown throughout the recession, is showing signs of strain as weakened investment portfolios curtail their ability to hire. In one case, the New York City Health & Hospitals Corp. said Friday that layoffs were likely at the 11 hospitals and four nursing homes it operates. In March, the HHC laid off 400 peoplw, the Journal said.

The corporate landscape at the end of the month may see Chrysler LLC bankrupt or vastly restructured with Fiat of Italy emerging as the largest shareholder. General Motors Corp. has no foreign rescuer waiting in the wings and has until the end of May to negotiate with shareholders and the United Auto Workers.

Retailers that have skimmed through the recession so far now face a customer base besieged by rising unemployment. Target Corp., for example, said same-store sales fell 6.3 percent in March compared with the same month a year ago.

After a week of few government reports, investors will be hit with a wave of reports this week. A producer price index report is due Tuesday, as are monthly retail figures. On Wednesday, the Federal Reserve’s Beige Book report is due. On Thursday, investors look at March figures for building starts and permits issued.