Stock Futures – Global Stocks Mixed, but Wall Street Is Set to Rebound From Tax-Hike Worries
Global stocks traded mixed on Friday, with losses in Europe and some gains in Asia, but equity futures are pointing to a bounce for Wall Street after losses triggered by fears of tax increases on wealthy households.
In Asia, the Hong Kong Hang Seng stood out with a 1% gain, while the
Nikkei 225 index
slipped 0.5% and stocks in
fell 0.3%. Soaring Covid-19 infections and a lack of oxygen tanks continued to overwhelm Indian hospitals. In Europe, the
Stoxx Europe 600
was under pressure and headed for its first weekly loss in eight weeks, despite upbeat purchasing managers index data.
U.S. stock futures rose around 0.1% across the board, following Thursday’s session that left the
DOW JONES WILSHIRE/DWCIDU”>
with a 321-point loss after Bloomberg News reported that President
would propose nearly doubling the capital-gain taxes rate for wealthy Americans. The
lost 0.9% each on Thursday.
“The big problem (one of many) in all this is the Senate—it would require support of all the Democrats in the upper chamber and this is far from assured,” said
chief market analyst at Markets.com, of that potential wealth-tax increase, in a note to clients.
“Nevertheless, coming off record highs and a good run up through the start of the year, the macro picture not really changing, rising Covid cases globally, strong earnings and other supportive factors largely priced in and the extent to which investors are ‘all in’ equities, we could be set for a downward move in equities over the coming weeks,” said Wilson.
The price of Bitcoin and other cryptocurrencies were under pressure on Friday, with some pointing to tax-hike worries, but also as steam continues to come out of that market following
direct listing more than a week ago. Bitcoin was trading at $48,481 and below the psychologically important level of $50,000 for the first time since early March.
were down more than 3% in premarket trading.
Economic data for Friday include the flash Markit manufacturing and services purchasing managers indexes for April. followed by new home sales.
Among stocks on the move, shares of Snapchat parent
climbed 6% in premarket trading, after the social-networking group reported better-than-forecast results for the March quarter.
Shares of Intel were down 2.8%, as the U.S. chip maker reported forecast-beating earnings, as the company sold more chips for personal computers, but revenue for its key data center fell.
shares jumped 8%, after the toy maker posted a narrower-than-expected quarterly loss and a surge in sales of nearly 50%.