FTSE 100 edges higher for second day as US markets tumble amid concerns over capital gains tax hike

Joe Biden reportedly slated to propose much higher capital gains taxes for rich

A man reads Asia-Pacific shares in a mixed trading day after US stocks tumble (file image) (Copyright 2021 The Associated Press. All rights reserved.)

London’s FTSE 100 built on the previous day’s recovery but fell short of the 7,000 mark it attained last week, along with the FTSE 250 ending higher with midcap stocks rallying and a weaker pound.

The blue-chip index ended up 43 points up at 6,938, while the domenstically focused FTSE 250 gained 279 points or 1.26 per cent.

Stock of construction giant Morgan Sindall — which is part of FTSE 250 — surged over 19 per cent on Thursday after a positive trading statement.

Meanwhile the US markets ended lower on Thursday after reports that the US president, Joe Biden, is slated to propose much higher capital gains taxes for the rich.

The Dow Jones Industrial Average dropped 321 points, or 1 per cent, to 33,815. The blue-chip benchmark crashed 420 points at the lowest point of the day.

The S&P 500 closed 0.9 per cent lower at 4,134 while the Nasdaq Composite also slid 0.9 per cent to close at 13,818.

Stocks in Asia-Pacific were mixed on Friday morning following an overnight drop on Wall Street.

Japan’s Nikkei 225 traded in red with a low of 0.80 per cent at noon, after falling up to 1 per cent. Taiwan index advanced through the session and traded with a gain of 0.66 per cent, and South Korea’s Kospi gained momentum after early hours.

Meanwhile, Hang Seng was also up 0.83 per cent and Shanghai Composite was up with minor gains at 0.045 per cent.

Australia’s S&P/ASX 200 is down 0.16 per cent.

Indian indices opened lower on Friday morning following mixed global cues and as investors continue to monitor the coronavirus situation in the country, after more than 310,000 new infections were registered on Thursday.

The BSE Sensex tumbled over 200 points at the opening while Nifty 50 fell 75 points to 14,331.