Global stocks rose on Thursday as the Federal Reserve reaffirmed its commitment to continue support for economic recovery from Covid-19.
European equities rose 0.4 percent on the UK’s FTSE 100 after reaching a mid-cap equivalent, the FTSE 250, a record high on Wednesday. The region-wide Europe Stocks 600 index also advanced 0.4 percent.
U.S. government bonds were stable, yielding 10-year notes about 1.66 percent. Bond markets have plummeted in recent months as investors feared the Fed’s ultra-loose monetary policy would cripple the economic recovery from the epidemic and boost inflation. Some investors still expect the Fed to tighten policy further before planning.
Minutes from the central bank’s policy-making meeting released on Wednesday showed that Fed policymakers were fairly innocent about the prospects for one. Inflation continues to return And is committed to keeping the policy simple until the epidemic hits employment.
April Larus, a fixed income product specialist at Insight Investments, said:
The S&P 500 closed at a new high on Monday following a blue-chip index set record-breaking Fed readout.
“We are seeing a slower pace from here after a world record on record than last year. Unlike last November, the shares are no longer lagging behind [behind] “Strong economic news flows,” warns Matthew Garman, equity strategist at Morgan Stanley.
The stock traders were stunned to hear the news of a massive reform International corporate tax The Biden administration proposed that some multinationals could see hefty tariff bills.
Sami Char, chief economist at Lombard Odier, said it would be unbalanced to reduce income from tax increases by boosting demand for higher levels of stimulus. “If more spending results on the tax front, it will eventually be seen as net positive,” he said.
Tobias Levkovich, Citi’s chief U.S. equity strategist, said investors were enthusiastic about the prospect of a tax increase.
“Assessment is in areas of concern as it is felt, yet money flows push the index even further. Huge revenue stimulus and helpful central banks have created the idea that there is no need to prevent risk, ”Levkovich said.
The Asian bowers were mostly in positive territory, with Hong Kong’s Hang Senang increasing in size by 1.1 percent. Australia’s S&P ASX 200 added one per cent, while China’s CSI 300 advanced 0.2 per cent. Japan’s topics fell 0.8 percent.