Business News: Asian stocks rise on Fed support as Biden unveils new stimulus measures..
Asian stocks rallied early in trading on Thursday after the U.S. Federal Reserve said it was too early to consider withdrawing emergency support for the economy and when U.S. President Joe Biden unveiled plans for a $ 1.8 trillion stimulus package.
Fed Chairman Jerome Powell said Wednesday that “it’s not time yet” to start discussing any changes in policy after the US central bank left interest rates and its bond buying program unchanged. despite having a more optimistic view of counting.
Biden proposed the new $ 1.8 trillion plan in a speech at a joint session of Congress on Wednesday, pleading with Republican lawmakers to work with him on divisive issues and face stiff competition from China.
In his first speech to Congress, he also made a passionate plea to raise taxes on corporations and wealthy Americans to help pay for what he called the “American Families Plan.” He also proposed to nearly double the investment income tax, which hit equity markets last week. Stephen Dover, Franklin Templeton’s chief market strategist in California, said the effect of the tax package on markets is difficult to measure for now.
“If it passes, I think it will have an impact on individual stocks that will pay a higher tax rate or companies with founders who will pay capital gains and could sell shares,” he said. “I think investors will think if they want to make their gains now and that creates the possibility of short-term volatility now.”
Tech shares got a boost later Apple On Wednesday, Inc reported sales and profits above Wall Street expectations, although it warned that a global chip shortage could dent iPad and Mac sales by several billion dollars. Nasdaq futures were up 0.79% and e-mini S&P futures gained 0.48% after Wall Street closed lower on Wednesday. The Dow Jones Industrial Average fell 0.48% to close 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 gained 0.2% to 1.2147 following the Fed’s decision to maintain supportive policies. Oil prices extended gains on Thursday after rising 1% in the previous session as bullish forecasts for a recovery in demand this summer offset concerns over rising COVID-19 cases in India, Japan and Brazil. Brent crude oil for June was up 0.37%, to $ 67.52 a barrel, while US West Texas Intermediate crude oil for June was at $ 64.12 a barrel, up 0.41%.