Joe Biden reportedly slated to propose much higher capital gains taxes for rich
European stock markets edged lower Friday, ending the week on a negative tone as investors study a slew of corporate earnings, particularly from Daimler, and economic data releases. European markets suffered a negative handover from Wall Street, with the major U.S. indices all dropping around 0.9% late Thursday, their biggest slide in five weeks, on reports that President Joe Biden is set to propose almost doubling capital-gains tax for the wealthy. European Central Bank President Christine Lagarde assured the market on Thursday that pullbacks in the central bank’s emergency program were not under discussion despite its prediction of a strong rebound in the euro zone economy from mid-year.
European stock markets are seen opening mixed Friday, as investors try to digest the competing influences of the European Central Bank retaining its ultra easy monetary policies and losses on Wall Street overnight. At 3:05 AM ET (0705 GMT), the DAX futures contract in Germany traded 0.1% higher, while CAC 40 futures in France dropped 0.1% and the FTSE 100 futures contract in the U.K. fell 0.4%. The European Central Bank decided at its meeting on Thursday to leave its 1.85 trillion-euro ($2.23 trillion) bond-buying program in place, confirming that purchases will run at an elevated pace in the current quarter.