US President Joe Biden waves while boarding Air Force One as he departs Washington for travel to Wilmington, Delaware at Joint Base Andrews, Maryland, US, February 5, 2021. ― Reuters picLONDON, April 29 — Global shares extended gains today after the Federal Reserve said it was too early to consider rolling back emergency support for the economy, and US President Joe Biden proposed a US$1.8 trillion stimulus package.
US Treasury yields rose 2.2 basis points to 1.6590, just shy of yesterday’s two-week high, while euro zone government bond yields climbed ahead of the release at 1200 GMT of a set of German inflation data that is expected to exceed the European Central Bank target for a second month in a row. Other data showed euro zone economic sentiment surged in April as vaccination campaigns against the coronavirus gathered speed.
“The Fed confirmed the roadmap for any change in policy, which is a reassuring factor,” he said. “It looks like tapering won’t materialise until 2022 and that has induced weakness for the dollar, is supportive of market liquidity and means less pressure on emerging markets.”Biden proposed the sweeping new US$1.
Stephen Dover, Franklin Templeton’s chief market strategist in California, said the effect of the tax package on markets is hard to measure for now. Australia’s S&P/ASX 200 edged up 0.3 per cent, as strong oil prices lifted energy stocks, closing at their highest level in nearly 14 months.Markets in Japan were closed for a holiday but Nikkei futures rose 0.6 per cent.