U.S. stocks dived on Thursday on reports President Joe Biden planned to almost double the capital gains tax, but analysts said the news was an excuse to take profits in a listless market ahead of big tech’s earnings next week.
Asian shares rose on Friday after the European Central Bank left policy unchanged, extending a rebound following a sharp selloff earlier in the week, but gains were capped as investors considered the impact of a possible U.S. capital gains tax hike.
The dollar was down on Thursday morning in Asia, remaining near multi-week lows as falling gains in U.S. Treasury yields diminished the safe-haven U.S. currency’s interest-rate advantage.
Gold was up on Thursday morning in Asia, sticking around an eight-week high thanks to a weaker dollar and falling U.S. Treasury yields.
Oil prices fell for a third day on Thursday as a surprise build in U.S. crude inventories and a resurgence of COVID-19 cases in India and Japan raised concerns that a recovery in global economy and fuel demand may slow.
The Dow rallied Wednesday, as investors resumed bets on reopening stocks, shrugging off a fresh wave of Covid-19 cases that threatens to slow the global recovery.