Wall St falls on angst over capital tax increases; the dollar goes up

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  • Oil soars with eyes on virus, Libya
  • The dollar index posts the biggest gain this month

NEW YORK, April 22 (Reuters) – A worldwide stock index fell on Thursday weighed by Wall Street after reports that the Biden administration will propose a sharp increase in capital gains tax, while the index the dollar rose as the euro and pound fell. recover recent gains.

Oil prices have risen as concerns over Libyan production more than offset concerns that rising coronavirus cases in India and Japan will lead to lower demand for energy.

On Wall Street, indices ended lower after reports that the Biden administration was seeking to raise capital gains tax to nearly 40% for high net worth individuals, nearly double the current rate. Read more

The proposal would require congressional approval, and analysts expected it to be watered down as it made its way through Congress. Read more

“If they are going to tax people more and their net will go down, the value of this instrument is lower. Incentives matter,” said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh.

“A lot of the money that’s in the market at this point isn’t taxable, and I don’t think people do that math. Every time they see news (like this), they just sell, they want to take the earnings this year. “

The Dow Jones Industrial Average (.DJI) lost 321.41 points, or 0.94%, to 33,815.9, the S&P 500 (.SPX) lost 38.44 points, or 0.92%, to 4 134.98 and the Nasdaq Composite (.IXIC) lost 131.81 points, or 0.94%, to 13,818.41.

The MSCI gauge of equities across the world (.MIWD00000PUS) fell 0.23% and the pan-European STOXX 600 index (.STOXX) rose 0.68%. Emerging markets equities (.MSCIEF) rose 0.34%.

The MSCI’s largest Asia-Pacific stock index outside of Japan (.MIAPJ0000PUS) closed 0.4% higher, while Japan’s Topix (.TOPX) rose 1.82%. Nikkei futures have not changed much.

Treasury yields fell alongside stocks on the capital gains tax issue.

The benchmark 10-year notes last rose 7/32 to a yield of 1.5416%, down from 1.564% on Wednesday night, remaining in a narrow range so far this week.

The front facade of the New York Stock Exchange (NYSE) is seen in New York, United States, February 16, 2021. REUTERS / Brendan McDermid / File Photo

Oil prices ended up rising as lower production in Libya more than offset concerns over demand from India, the world’s third-largest consumer, where a second wave of coronavirus infections overwhelmed hospitals. Read more

US crude rose 0.52% to $ 61.67 a barrel and Brent to $ 65.60, up 0.43% on the day.

In currency markets, the dollar rose as the pound gave up some of its recent large gains as the euro was weighed down by an ECB statement optimistic about the economic recovery but lacking details on the removal of the comeback.

The meetings of the US Federal Reserve and the Bank of Japan will follow next week.

The dollar index rose 0.178%, the euro down 0.15% to $ 1.2015.

The Japanese yen rose 0.10% against the greenback to 107.96 per dollar, while the British pound last traded at $ 1.3841, down 0.63% on the day.

The Russian ruble rose against the dollar after Moscow signaled the end of military exercises near the Ukrainian border, easing some of the geopolitical risk premium.

The ruble strengthened 1.78% against the greenback to 75.29 per dollar.

Turkish markets have suffered under the weight of expectations that US President Joe Biden will officially recognize the massacre of Armenians by the Ottoman Empire during World War I as an act of genocide.

The pound was down 1.64% against the US dollar at 8.31.

Spot gold fell 0.6% to $ 1,783.68 an ounce. Silver fell 1.71% to $ 26.12.

Additional reporting by Simon Jessop in London, Ross Kerber in Boston, Lucia Mutikani in Washington and David Henry and Scott DiSavino in New York; Editing by Nick Zieminski and Sam Holmes

Our standards: Thomson Reuters Trust Principles.


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