The prospect of a near doubling of wealth tax in the United States has thrown a cold on Wall Street, but the shock wave seems limited for the time being. Investors should therefore be cautious while continuing to rely on support from central banks and corporate publications. The market will also monitor the PMI IHS Markit activity indices in the private sector in Europe and the United States.
In New York, the Dow Jones and S&P 500 fell 0.9% on Thursday, their biggest drop in more than a month, unsettled by reports that Joe Biden is considering raising the tax rate on the fortune in order to finance part of its social plan. The rate would thus be increased from 20% currently to 39.6% for Americans whose income exceeds $ 1 million per year, or even to 43.4% by adding the tax on financial investments, reports Bloomberg, citing close sources. folder. Joe Biden is expected to present his proposals next week as part of his address to Congress.
Little chance that the project will be voted as it is
The tension seems to have eased slightly, the contracts futures on American indices picking up a few points this morning. “It can certainly be argued that the prospect of tax hikes is never welcome, let alone a doubling of a key rate, but the likelihood that an amount of this nature will pass the test of a Divided Congress is thin, if not zero, nuance Michael Hewson, chief market analyst at CMC Markets. However, in these times of great uncertainty, it doesn’t take much to trigger profit taking after a hectic week. Taxes should definitely go up, but certainly not as much as they say », He concludes.
Closer to home, the European markets have rather welcomed the still accommodating attitude of the ECB, which has undertaken to continue its purchases within the framework of the Emergency Purchasing Program in the face of the pandemic (PEPP) ” at a much higher rate than during the first months of the year “. Christine Lagarde also underlined the fact that the euro zone economy should rebound from the second half of the year once the coronavirus pandemic is under control.
Three more Cac 40 companies
Liquid air confirmed its objectives for 2021, after recording organic growth of 3.8% over one year in its turnover in the first quarter, thanks in particular to the recovery observed in all its Gas & Services activities. The specialist in industrial gases says to himself ” confident in its ability to further increase its operating margin and achieve growth in recurring net income, at constant exchange rates ».
Vivendi published Thursday evening a turnover increase in the first quarter, thanks to the dynamism of its subsidiaries Universal Music Group (UMG) and Editis. The group has also indicated that it will submit to the general meeting of June 22 its plan to distribute the majority of UMG’s capital to its shareholders, with a view to carrying out the transaction in the fall.
Vinci posted a turnover up 5% to 10.2 billion euros in the first quarter, driven by a rebound in construction, its airport activities being however deeply affected by the coronavirus crisis.
Remy Cointreau says it expects organic growth of 10% in its current operating income for fiscal year 2020-2021, as strong demand for its high-end cognac in the United States and China has boosted its sales by 15.1% in the fourth quarter .
Airbus announced that it has received a firm order from Delta Air Lines for 25 A321neo.
LVMH. The Italian fashion group Tod’s has indicated that the world number one in luxury will strengthen its stake in its capital by increasing it from 3.2% to 10%.
The auto sector will also be monitored after Daimler raises its profit forecast for 2021, while warning that the semiconductor shortage is expected to weigh on second-quarter sales again.
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