“All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.” —Arthur Schopenhauer

1. China unveils new property curbs — China trying to cool the again-bubbly property market, Beijing banned single-person households in the city from buying more than one residence and increased the minimum down-payment required for all buyers of 2nd homes.
2. Factories Cool Off As Possible Spring Slowdown Looms — ISM’s manufacturing gauge fell 2.9% to 51.3 in March, signaling a slower pace than expected. It shows a possible sign of another economic slowdown this spring according to IBD.
3. Stockton cleared for bankruptcy protection — in a blow to municipal bondholders, a judge has ruled that Stockton in California is eligible for bankruptcy protection. The decision allows the city to keep its pensions intact while imposing losses on those holding its paper. Jefferson County in Alabama and San Bernardino in California – along with other municipalities – are watching closely.
4. Court tells holdouts to respond to Argentina’s bond offer — A U.S. appeals court ordered holdout creditors to respond to Argentina’s proposal to offer them restructured bonds that either discount the original debt’s face value or extend the final payout years into the future. Argentina had been trying to avoid returning the full amount, sparking fears it could default, as it did in 2001.
5. Japan unveils massive stimulus plan (EWJ) — the Bank of Japan (BOJ) said it would increase its purchase of government bonds by 50 trillion yen ($520bn; £350bn) per year in its most aggressive steps to date to battle deflation and a stagnant economy. The BOJ will buy $79 bil in bonds a month, that is the equivalent of almost 10% of Japan’s annual gross domestic product.
6. Russell 2000 Vs. S&P 500 Divergence — is it a warning sign of things to come for small caps and the broader market? Below is the chart of the two indexes courtesy of BIG.

7. Hong Kong hit by bird flu fears — Hong Kong stocks suffered their worst drop in more than eight months last week as worries about the impact from a new strain of avian flu in China hurt sentiment, airline shares were hit the most. Below is the chart of the HangSeng during the last bird flu crisis.

The week ahead — Economic data from Econoday.com: