Asian stocks rose in early trading Thursday after the US Federal Reserve said it was too early to consider withdrawing emergency aid to the economy and as US President Joe Biden made plans for a $ 1 stimulus package Introduced $ 8 trillion.
Fed Chairman Jerome Powell said Wednesday that “the time is not yet” to discuss changing policy after the US Federal Reserve left interest rates and its bond purchase program unchanged, despite being more optimistic about the count.
Biden proposed the sweeping new $ 1.8 trillion plan in a speech to a joint congressional session on Wednesday, asking Republican lawmakers to work with him on issues and face fierce competition from China.
He also made a passionate plea for taxing corporations and wealthy Americans to pay for what he called the American Families Plan in his maiden address to Congress. He has also proposed almost doubling the capital gains tax, which rocked stock markets last week. Stephen Dover, Franklin Templeton’s key market strategist in California, said the tax package’s impact on markets is difficult to measure right now.
“When it’s over, I think it will affect individual stocks that pay a higher tax rate or companies with founders that might pay capital gains and sell stocks,” he said. “I think investors will start thinking about capitalizing on their profits now, and that creates the possibility of short-term volatility.”
Tech Shares received a boost after Apple Inc posted sales and earnings above Wall Street expectations on Wednesday, but warned that a global chip shortage could hurt iPad and Mac sales by billions of dollars. Nasdaq futures were up 0.79% and S&P E mini futures were up 0.48% after Wall Street ended lower on Wednesday. The Dow Jones Industrial Average fell 0.48% to end at 33,820.38 points, while the S&P 500 lost 0.08% to 4,183.18.
The dollar fell 0.15% against the yen to 108.43 and the euro rose 0.2% to 1.2147 after the Fed decided to maintain supportive policies. Oil prices expanded their gains on Thursday after rising 1% in the previous session as bullish forecasts for demand recovery this summer offset concerns over rising COVID-19 cases in India, Japan and Brazil. Brent crude oil rose 0.37% to $ 67.52 a barrel in June, while US West Texas Intermediate crude oil was $ 64.12 a barrel in June, an increase of 0.41%.