Mainland Chinese stocks were down by the early morning. The Shanghai Composite was down by 0.58% to 3,486.86. Hong Kong’s Hang Seng Index was down about 0.29% to 28,301.75.
Japan’s benchmark Nikkei average. Nikkei 225 is trading up 0.43 per cent at 28,218.63 on Friday while the Australian Index S&P / ASX 200 fell 0.07 percent to 7,013.71. South Korea’s Kospi was down by 0.21% to 3,155.98.
The FTSE MIB climbed up by 0.88% to 24,702.46. In the cash markets, the DAX futures Germany was trading 1.70% higher at 15,370.25. CAC 40 futures in France climbed up by 1.29% to 7,019.57, while the FTSE 100 futures in the U.K was up by 1.00% to 7,019.63 at the time of writing.
In the U.S. on Wall Street, the Dow Jones Industrial Average closed 0.55% up at 34,084.38 the S&P 500 was up 1.06% to 4,159.56 and the Nasdaq 100 was up 1.77% at 13,535.03.
In the Forex market, GBPUSD was 0.55% up at 1.4043. The USDJPY was up 0.10% at 108.86. The USDCHF was up 0.01% at 0.8972. EURUSD was up 0.04% at 1.2087, EUR/GBP was up 0.15% at 0.8628, at the time of writing.
In the commodity market, U.S. Gold futures fell 0.43% at $1,873.85. Elsewhere, Silver futures fell 0.99% to $27.788 per ounce, Platinum rose 0.71% at $1,219.05 per ounce, and Palladium was down 0.60% at $2,834.50.
Brent crude oil was down 0.09% to $65.17 a barrel while U.S. West Texas Intermediate (CLc1) rose 0.29% at $62.12.
In the Cryptocurrency Markets, BTCUSD rose 6.63% at $40,824.9 , Ethereum at 2,809.28 up by 13.45%, Litecoin at 207.582 up 7.18%, at the time of writing.
TOP STOCKS TO WATCH OUT TODAY:
AstraZeneca up 2.23% at 8,131.08. Apple Inc. up 2.10% at $127.31 , Amazon.com up 0.49 % at $ 3,247.49, TESLA Inc up 4.14% at $586.78, Unilever up 0.35% at 4,296.830, Microsoft up 1.38% at $246.18 , Diaego up 1.66% at 3,402.65.
The U.S. Treasury Department on Thursday offered to accept a global minimum corporate tax of at least 15% during international negotiations, a rate significantly below its proposed 21% minimum for U.S. multinational firms.
The department said the proposal was made during an Organization for Economic Cooperation and Development (OECD) tax steering group meeting on base erosion and profit shifting. The group is aiming to reach broad agreement this summer to rework rules for taxing multinational corporations and big technology companies such as AlphabetInc and Facebook Inc .
“Treasury proposed to the steering group that the global minimum tax rate should be at least 15%,” the department said in a statement. “Treasury underscored that 15% is a floor and that discussions should continue to be ambitious and push that rate higher.”
U.S. Treasury Secretary Janet Yellen first proposed a 21% U.S. corporate minimum tax in April as part of President Joe Biden’s $2.2 trillion infrastructure spending proposal, which would be financed largely by increasing the U.S. corporate tax rate to 28%.
The Trump administration and congressional Republicans in 2017 cut the corporate tax rate to 21% from 35%. At the same time, the Treasury launched a U.S. minimum tax, of 10.5%, known as the Global Intangible Low-Taxed Income tax (GILTI) to capture revenue shifted by companies to tax-haven countries.
The Biden administration’s proposed 21% GILTI rate was widely viewed as a starting point for renewed OECD talks on a global minimum tax. That level has been backed by France and Germany. But other countries have pushed for a lower rate, as previous OECD discussions on the subject had centered around 12.5%, the same rate charged by Ireland.
A U.S. Treasury official said the Biden administration will continue to advocate for the highest rate possible above 15%, adding that the offer does not alter the 21% proposed U.S. minimum tax.
The official said that even at 15%, the spread between U.S. and global minimum rates would narrow considerably, because there currently is no global minimum tax.
“The 15% rate is certainly more realistic given where other countries are,” said Manal Corwin, head of KPMG’s Washington National Tax practice and a former Treasury official.
“Importantly, this is signaling that the U.S. is willing to accept a global minimum tax that is well below the rate they are proposing for GILTI,” she added. “I suspect it was important for reaching agreement at the OECD that the U.S. is willing to agree to something well below 21%.”
The Treasury Department said officials from its Office of Tax Policy were “heartened by the positive reception to its proposals and the unprecedented progress being made towards establishing a global minimum tax.”
It proposed the global minimum tax as a way to minimize the impact of a higher U.S. tax rate on the competitiveness of American companies and deter them from shifting operations or profits to lower-tax jurisdictions.
Yellen had said she wanted to stop a “30-year race to the bottom on corporate tax rates” at a time when governments have spent trillions of dollars on COVID-19 relief measures.
The Treasury Department said it made clear at the OECD meeting that a global minimum tax rate “would ensure the global economy thrives based on a more level playing field.”
European trade ministers will explore on Thursday a post-Trump re-set of transatlantic trade ties in virtual talks with new U.S. Trade Representative Katherine Tai.
The encounter comes days after a partial truce was announced in a three-year steel dispute with the United States, with the European Union declaring on Monday that it would not, for now, impose retaliatory tariffs on more U.S. products.
“We have the opportunity to create a new basis for global trade politics with the new U.S. administration,” German Economy Minister Peter Altmaier said ahead of the talks.
EU trade chief Valdis Dombrovskis said it was important for the United States to remove its tariffs on EU steel and aluminium imports by the end of the year.
While U.S. President Joe Biden has made clear his focus remains on protecting American jobs, European officials hope his arrival will make trade ties with the United States more predictable than during the volatile Donald Trump presidency.
A sign of that possible entente came this week as the Biden administration waived sanctions on the company behind the Russian Nord Stream 2 gas pipeline project backed by Berlin.
Yet the U.S. president is under heavy domestic pressure not to yield too much: steel industry groups and the steelworkers union this week urged him to maintain tariffs on steel imports imposed by Trump, saying they had proved a success.
“Eliminating the steel tariffs now would undermine the viability of our industry,” wrote the heads of the American Iron and Steel Institute, the Steel Manufacturers Association, the United Steelworkers and other groups.
For now the United States will maintain its tariffs of 25% on steel and 10% on aluminium. Those duties also apply to imports from China, India, Norway, Russia, Switzerland, Turkey, Japan and South Korea among others metals-exporting countries.
One area of emerging consensus between the EU and United States is the need for a tougher line on China. The partial truce included a joint statement on the need to “hold countries like China that support trade-distorting policies to account”.
That comes as lawmakers in the European Parliament are set to agree later on Thursday that China must remove its sanctions on European Union politicians and diplomats to save a newly created investment accord with Europe.
Beijing’s punitive measures, blocking travel to China and business with its companies, were imposed in March in response to Western sanctions against Chinese officials accused of the mass detention of Muslim Uyghurs in northwestern China.
EU lawmakers say the Chinese sanctions are not based on international law, while the bloc’s measures tackle abuses of human rights upheld in United Nations treaties. Beijing denies any wrongdoing.
Despite all the tensions, Germany earlier announced that exports to China in April rose by 16.3% year-on-year to 8.4 billion euros. It also said exports to the United States leaped by more than 60% to 10.1 billion euros in the same period, underlining the importance of trade to Europe’s top economy.
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TRADE SUGGESTION- Sell AT 1.20700, TAKE PROFIT AT 1.20500 AND STOP LOSS AT 1.20800.
TRADE SUGGESTION- AT 34,150.50, TAKE PROFIT AT 34,350.50 AND STOP LOSS AT 34,050.50.
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