Asian markets shake off US tax worries to push higher

TEHRAN, Apr. 23 (MNA) – Asian shares rose on Friday after the European Central Bank left policy unchanged but gains were capped as investors considered the impact of a possible US capital gains tax hike.

The ECB's decision to keep copious stimulus flowing came despite its prediction of a strong rebound in the eurozone economy from mid-year as COVID-19 infections are brought under control.

"There were a couple of subtle acknowledgments today that an upgrade to forecasts is likely coming at the June 10 meeting ... Lagarde did highlight the pick-up in vaccinations and noted high-frequency data are confirming to ECB staff that their previous view of an improvement in the medium-term (is) on course," said Ray Attrill, head of FX strategy at National Australia Bank, Reuters reported. 

But in a hit to stock market sentiment overnight, the administration of US President Joe Biden was reported to be seeking an increase in the capital gains tax to near 40% for wealthy individuals, almost double the current rate.

The Dow Jones Industrial Average (.DJI) ended down 0.94%.

"The move on the Dow overnight I think needs to be seen in the context that it's had a remarkable run-up," said James McGlew, executive director of corporate stockbroking at Argonaut. "I don't think people are completely negative on the fact that those tax changes are being flagged. Ultimately it's money that will feedback into the economy."


News Code 172457


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