Asian markets are mixed after Wall Street pullout on Biden tax report

BEIJING – Asian stock markets were mixed on Friday after Wall Street fell following a report that President Joe Biden will propose to raise taxes on high net worth investors.

Wall Street’s benchmark S&P 500 fell 0.9% overnight after Bloomberg News, citing unidentified sources, said Biden would propose to raise taxes on people who earn more than a million of dollars on stock transactions.

This has added to a mix of better corporate and hiring profits in the United States, unease that inflation and interest rates could rise, and new coronavirus infections that have prompted some governments to tighten. anti-disease checks.

Investors are struggling “to navigate very confused global outlook” and earnings reports that “factor in a slow return to pre-pandemic life,” Oanda’s Edward Moya said in a report.

The Shanghai SHCOMP Composite Index,
increased by 0.1% while the Nikkei 225 NIK,
in Tokyo lost 0.8%. The Hang Seng HSI,
+ 0.11%
in Hong Kong gained 0.9%.

The Kospi 180721,
in Seoul slipped 0.1% while Sydney’s S & P / ASX 200 XJO,
+ 0.48%
lose 0.2%. Actions in Taiwan Y9999,
+ 0.33%
and New Zealand NZ50GR,
+ 0.18%
increased while Singapore STI,
+ 0.07%
and Jakarta JAKIDX,
+ 0.17%
moved back.

Sales on Wall Street were rampant in the wake of Biden’s tax plan report.

According to Bloomberg, this would increase the capital gains tax to 39.6% for investors earning more than $ 1 million, more than double the current rate for Americans in that income bracket. He said a separate surtax on investment income could raise the total tax rate for high net worth investors to 43.3%.

Tech stocks, banks and businesses that rely on consumer spending accounted for much of the slippage. Yields on Treasuries have remained largely stable.

The S&P 500 SPX,
+ 0.28%
decreased to 4,134.98. It is down 1.2% for the week after peaking on Friday.

The Dow Jones Industrial Average DJIA,
+ 0.11%
fell 0.9% to 33,815.90. The Nasdaq composite COMP,
+ 0.23%
slipped 0.9% to 13,818.41.

The latest round of US government stimulus has helped lure retail investors into the world’s largest market. Now investors are evaluating other Washington proposals, including tax changes and Biden’s proposed $ 2.3 million infrastructure spending program.

Investors are also looking for signs of possible economic improvement, as most companies in the S&P 500 publish quarterly results. Also on Thursday, the Department of Labor announced that the number of Americans claiming unemployment benefits fell again last week to its lowest level since the start of the pandemic.

China, the world’s second-largest economy and major importer, rebounded late last year and the United States is showing strong signs of recovery. Europe and other parts of the world are lagging behind.

On the energy markets, the benchmark US crude CLM21
rose 33 cents to $ 61.76 a barrel in electronic trading on the New York Mercantile Exchange. The contract advanced 8 cents Thursday to $ 61.43. Brent raw BRNM21,
used to set the price of international oil, gained 27 cents to $ 65.67 a barrel in London. It added 8 cents the previous session to $ 65.40 a barrel.

The dollar USDJPY,
fell to 107.94 yen from 108.10 yen on Thursday.

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