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Tuesday, June 28, 2022
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Tuesday, June 28, 2022
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    Global stocks mixed after Wall Street falls on Biden tax report

    BEIJING (AP) — Global stock markets were mixed yesterday after Wall Street fell following a report United States (US) President Joe Biden will propose raising taxes on the wealthiest investors.

    London and Frankfurt opened lower. Tokyo declined while Shanghai and Hong Kong advanced.

    Wall Street futures were higher after the S&P 500 index lost 0.9 per cent on Thursday following a report by Bloomberg News, citing unidentified sources, that Biden will propose raising taxes on people who make more than USD1 million on stock trades.

    That added to a mix of better corporate profits and US hiring, unease that inflation and interest rates might rise, and re-newed coronavirus infections that have prompted some governments to tighten anti-disease controls.

    Investors are struggling “to navigate through a very muddled global outlook” and earnings reports that have “priced in a slow return to pre-pandemic life,” said Edward Moya of Oanda in a report.

    In early trading, the FTSE 100 in London lost 0.2 per cent to 6,924.40 while the DAX in Frankfurt shed 0.2 per cent to 15,288.36. The CAC 40 in Paris was up less than 0.1 per cent at 6,270.87.

    A currency trader passes by screens at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea. PHOTO: AP

    On Wall Street, futures for the S&P 500 index and the Dow Jones Industrial Average were up 0.2 per cent.

    On Thursday, selling on Wall Street was widespread following the report about Biden’s tax plan.

    According to Bloomberg, it would raise the capital gains tax to 39.6 per cent for investors who make more than USD1 million, or more than double the current rate for Americans in that income bracket. It said a separate surtax on investment income could boost the total tax rate for wealthy investors as high as 43.3 per cent.

    Technology stocks, banks and companies that rely on consumer spending accounted for much of the skid.

    Treasury yields held mostly steady.

    The S&P 500 is down 1.2 per cent for the week after hitting a high on April 16.

    The Dow and the Nasdaq composite both slide 0.9 per cent.

    In Asia, the Shanghai Composite Index rose 0.3 per cent to 3,474.17 while the Nikkei 225 in Tokyo lost 0.6 per cent to 29,0290.63. The Hang Seng in Hong Kong gained 1.1 per cent to 29,078.75.

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