AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Summary
- Australian, Japanese shares in red
- NZ shares are trading flat
- Major US indices closed over 90 bps down
The shares across the Asia-Pacific (APAC) region opened in red on Friday morning, as sentiments were subdued due to the multiple global concerns.
Australian benchmark index ASX 200 opened in red and was trading 24 basis points (bps) lower, at the time of filing this copy.
The situation was no different in Japan -- where benchmark Nikkei 225 was trading at a loss of 118 bps.
However, the New Zealand markets were muted, as the country’s benchmark NZX50 was trading flat with gains of just 2 basis points.
The Morgan Stanley Capital International’s (MSCI) APAC index was trading at 205.34, 124 bps – little past Australia’s market opening.
The reports about US President Joe Biden likely to double the long-term capital gains (LTCG) on the wealthier strata have taken the sheen further away from global equities – that were already lacklustre due to worsening COVID-19 situation.
According to the reports, US President Joe Biden is working on a legislation where wealthy individuals can end up paying capital gains tax of 39.6%. This, coupled with prevailing surcharge on the investment income, would shoot up the federal tax rates to 43.4% for the people earning more than US$1 million a year.
The report came on the back of worsening COVID-19 situation in the world, as daily new cases are nearing one million-mark for the first time.
As a result, all the major benchmarks in the US closed in red – Dow 30 closed down 94 bps, S&P closed down 92 bps, and NASDAQ closed down 94 bps.
