Global Markets Are Shaped by Biden's Budget Proposal

Global markets are shaped by Biden's budget proposal. US President Joe Biden has proposed a massive $6 trillion budget.

The news that US President Joe Biden drafted the giant budget package had a great impact on the stocks and US bond market. While Asia Pacific stocks and US futures are positive on the news, the US 10-year returns have increased due to concerns that the giant budget may trigger inflation. The intraday rise exceeded 2 percent in the Japanese Nikkei 225 index. Positive pricing was also effective in Hong Kong Hang Seng and South Korean Kospi indices. The first futures at the S&P 500, which closed Thursday with a 0.1 percent rise, showed a positive opening. The US 10-year yield rose to 1.61%, while Australian 10-year yields rose six basis points.

Biden's Budget Offer

According to the news of the New York Times, US President Joe Biden is preparing to submit a budget proposal of $ 6 trillion, which will increase the long-term federal spending of the USA to the highest level since the Second World War, to stimulate investments in infrastructure, education and health.