Yazar: Geoffrey Smith
Investing.com – US President Joe Biden’s tax plans could hit fewer companies than his campaign promised: New details from the Treasury bolster tech stakes as Wall Street prepares to open. Fed Chairman Jerome Powell will speak as US jobless claims are expected to have continued their downward trend last week. AstraZeneca shares are rising despite the fact that concerns about the safety of the Covid-19 vaccine are not gone. And crude oil still hasn’t exceeded $ 60.
What you need to know in financial markets on Thursday, April 8th:
1. Biden softens his tax plan
It looks like President Joe Biden’s plans to tax companies more will be softer than his election campaign promise.
The US Treasury shared details of the plan on Wednesday. The 15% minimum tax proposal proposed by Janet Yellen last week will apply to companies above $ 2 billion, rather than companies with annual revenue of over $ 100 million as mentioned last year.
The proposals gave life to a multifaceted move to agree on a common framework for corporate taxation. G20 finance ministers discussed the issue Wednesday and are now aiming to make a deal again by July. Almost a decade old, this initiative has already missed most of the deadlines, but if it yields, it could avoid national taxes on digital services companies and clear a major US-European dispute.
2.Unemployment claims will be announced, eyes are on Powell’s speech
The latest jobless claims to be published are expected to have continued this downward trend last week after an unexpected drop to 719,000. Analysts are waiting for 680,000 applications – this will be the second largest drop since the outbreak began.
Initial unemployment data show that the epidemic continues at full speed, but the more general measurement of ongoing applications and the large increase in recruitment and job opportunities point to the labor market gaining momentum.
Fed chairman Jerome Powell, on the other hand, will speak at the IMF’s virtual spring meeting, but he is not able to provide further information on the minutes published on Wednesday.
3. Stock markets will open high, tax plans and technology shares are supported
US markets will open higher. The softening of President Biden’s tax plans enhanced the sentiment towards Big Tech names.
rose 0.3% and 0.8% while de facto calm.
Among the stocks that might attract attention later are Constellation Brands (NYSE 🙂 and food company Conagra, whose outlook will be colored by the expected impact of the re-opening of the economy. Both of them will share their last quarter reports.
4. AstraZeneca is on the rise, though vaccine fears have not disappeared
AstraZeneca shares gained 2.9%. European medical regulatory agencies did not provide as much negative updates as they feared.
The EU and UK have confirmed a possible link between the vaccine and potentially dangerous blood clotting diseases, but still argue that the benefit outweighs the risks. Britain’s Medicines and Health Regulatory Agency announced that the number of people who died from this type of blood clot is 19, after 20 million people received the AstraZeneca vaccine.
With the policy of selling at cost while the epidemic continues, the most ordered vaccine worldwide is AZ’s vaccine. So any indication that it is unsafe would pose a threat to vaccination campaigns in poor countries. This is all the more important for countries that are experiencing the worst wave of cases, such as India and Brazil.
5.Oil is in trouble despite stock reports
Crude oil prices continue to struggle below $ 60. It is feared that the virus wave in India and South America will slow the recovery in global demand.
Reports, which saw a larger-than-expected decline last week, were also not supportive of discouraging developments in the gasoline trend and cast doubt on the strength of final demand.
WTI was down 0.8% to $ 59.30, while futures were down 0.5% at $ 62.84.