This is what you need to know to trade today Friday, April 23:
Stock markets are on the defensive amid concerns about a rise in capital taxes in the United States and an increase in covid cases in Asian countries. Cryptocurrencies are undergoing a prolonged sell-off. The PMIs of Europe, the United Kingdom and the United States stand out.
The White House is considering a substantial increase in capital tax earnings for high-income people, in an attempt to fund social programs. Passing such legislation would deliver on campaign promises, but the news surprised markets, with the S&P 500 posting its biggest drop since March on Thursday. Global equities will try to rally on Friday.
Investors are also concerned about the horrendous wave of coronavirus from India. The country hit a new record for infections, around 330,000 and the death toll is also rising. Japan is also adding restrictions amid a new wave.
The 10-year US Treasury yields They have stabilized around 1.55%, pushing the dollar lower after safe-haven flows sustained it on Thursday. The dollar was also supported by jobless claims, which came as a surprise drop to 547,000. Markit’s purchasing manager indices for April and new home sales figures are seen in the US session.
The Preliminary PMI they also stand out in the European session, and economists expect them to fall from their highs despite optimism about the reopening of Europe. The European Central Bank modestly improved its views in Thursday’s rate decision, saying medium-term risks are balanced. EUR / USD is hovering above 1.20.
See ECB Quick Look: Lagarde Offers Four Subtle Swings That May Boost The Euro
The GBP/USD it is licking its wounds around 1.3850 awaiting UK PMIs. Retail sales have improved expectations. The country is expected to reach 50% with a single vaccine in the next few days.
The Bitcoin It has dropped below $ 50,000, 20% less than the high near $ 65,000, but still 80% higher so far this year. Tax increases, legal problems and an unfavorable technical situation have been cited as reasons for the prolonged falls.
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