Modestly firmer equity markets contrasted with ructions in cryptocurrencies as investors fretted over the impact of tax changes. Bitcoin’s rout deepened, dropping below the $50,000 level to a low of $48,338.37, its lowest level in nearly seven-week. Ethereum plunged nearly 12% before trimming losses and was last down about 7% at $2,240.65.
The ECB’s decision to leave policy on hold came despite its prediction of a strong rebound in the euro zone economy from mid-year as COVID-19 infections are brought under control.
In a hit to stock market sentiment overnight, the administration of U.S. President Joe Biden was reported to be seeking an increase in the capital gains tax to near 40% for wealthy individuals, almost double the current rate. The Dow Jones Industrial Average ended down 0.94%.
In Asia on Friday MSCI’s broadest index of Asia-Pacific shares outside Japan shook off early small losses to rise 0.3%.
Chinese blue-chip shares rose 0.93%, supported by consumer staples, health care and financial firms. Hong Kong’s Hang Seng rose 0.93% and Seoul’s Kospi added 0.1%.
Japan’s Nikkei stock index slid 0.7%.
In the currency market the euro edged up less than 0.1% on the day to $1.2023 after dipping a day earlier. The dollar was slightly lower against the yen at 107.92 and the dollar index, which tracks the greenback against a basket of currencies of other major trading partners, fell 0.07% to 91.217.
The yield on benchmark 10-year Treasury notes was little changed at 1.554% after the capital gains tax reports pulled yields lower on Thursday.
U.S. crude rose 0.5% to $61.72 a barrel and global benchmark Brent crude added 0.3% to $65.61 per barrel.
Spot gold rose about 0.15% to $1,786.86 per ounce.
