* European stocks down 0.4%, S&P futures up 0.25%
* Bitcoin down 4.5%, Ethereum down 6.5%
* Euro eyes 7-week high vs dollar, euro zone PMI upbeat
* U.S. April PMI data due at 1345 GMT
By Carolyn Cohn
LONDON, April 23 (Reuters) - European stocks were on track
for their first weekly loss in eight and Bitcoin hit its lowest
in nearly seven weeks on Friday as investors assessed the impact
of a possible U.S. capital gains tax hike.
President Joe Biden will roll out a plan to raise taxes on
the wealthiest Americans, including the largest-ever increase in
levies on investment gains, to fund about $1 trillion in
childcare, universal pre-kindergarten education and paid leave
for workers, sources familiar with the proposal said.
Biden's administration is seeking an increase in the capital
gains tax to near 40% for wealthy individuals, almost double the
current rate, the sources said. "The devil is always going to be in the detail," said Ned
Rumpeltin, European head of currency strategy at TD Securities,
adding that the Democrats' narrow majority could make the
proposals hard to pass.
The pan-European STOXX 600 .STOXX dropped 0.4% and was on
course for a 1% weekly drop, with a surge in global coronavirus
cases also weighing. https://tmsnrt.rs/2FkV6wq .EU
S&P futures ESc1 gained 0.25%, however, after the Dow
Jones Industrial Average .DJI ended down nearly 1% on the tax
proposal.
Bitcoin BTC=BTSP dropped below the $50,000 level to its
lowest level in nearly seven weeks, before recovering some
ground to trade at $49,350, down 4.5%. Ethereum ETH= was down
6.5% at $2,250. stocks .MIWO00000PUS were flat on the day and down 0.9%
on the week after hitting record highs close to 3,000 on Monday.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 0.65%, however, with Chinese blue-chip
shares .CSI300 up 0.91%, supported by green and healthcare
stocks. Japan's Nikkei stock index .N225 slid 0.57%.
"I don't think people are completely negative on the fact
that those (U.S.) tax changes are being flagged," said James
McGlew, executive director of corporate stockbroking at
Argonaut.
"Ultimately it's money that will feed back into the
economy."
EUROPEAN GROWTH
The euro zone economy will grow more slowly this year than
earlier thought and a temporary gain in inflation is likely to
exceed a previous projection, a European Central Bank survey
showed on Friday, a day after the bank left policy unchanged.
However, IHS Markit's flash Composite Purchasing Managers'
Index for the euro zone, seen as a good guide to economic
health, rose to a nine-month high of 53.7 in April, confounding
expectations in a Reuters poll for a dip to 52.8. Anything above
50 indicates growth. The United States numbers are due at 1345 GMT.
"The euro zone has enjoyed a record manufacturing boom this
month as the continent sees its early stages of the recovery
efforts reaping rewards," said Mihir Kapadia, CEO of Sun Global
Investments, in a client note.
"We could expect some hiccups along the way, but sentiment
should remain higher for some time.”
The euro EUR= rose 0.3% on the day to $1.2052 after
dipping a day earlier, within sight of a seven-week high hit
earlier this week.
The dollar was steady against the yen at 107.92 JPY= and
the dollar index =USD , which tracks it against a basket of
currencies of other major trading partners, fell 0.26%.
The yield on benchmark 10-year Treasury notes US10YT=RR
was steady at 1.5489% after the capital gains tax reports pulled
yields lower on Thursday. Germany's 10-year government bond
yield DE10YT=RR , the benchmark of the euro area, was also
flat.
Oil prices were steady, with support from the European
economic recovery countered by persisting coronavirus concerns
as infections surged to record levels in India. O/R
U.S. crude CLc1 edged up 0.1% to $61.50 a barrel and
global benchmark Brent crude LCOc1 was flat at $65.35 per
barrel.
Spot gold XAU= was little changed at $1,785 per ounce but
was still set for a weekly rise on soft Treasury yields and a
subdued dollar. GOL/
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates YTD http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
Crypto tumbles https://tmsnrt.rs/2RTwEYJ
COVID-19 Global Tracker COVID-19 Global Tracker https://tmsnrt.rs/2FkV6wq
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>