U.S. Tax Bill Impact: Global Markets Show Mixed Reactions
Asian shares edged up as U.S. Treasuries saw increased activity following President Trump's tax bill passage. While U.S. business activity improved, European shares declined. The House tax bill, aiming to fulfill campaign promises, raises debt concerns, affecting U.S. Treasury yields and causing mixed market responses.
Asian shares saw minor upticks on Friday as investors gravitated towards U.S. Treasuries, following the narrow passage of President Donald Trump's tax bill in the House. Despite this, concerns over elevating debt levels persist.
Globally, U.S. business activity gained momentum in May, lifting Wall Street initially before encountering late-session selling pressure, leading to a flat close. In contrast, European markets slumped due to weak performance data. U.S. House Republicans narrowly passed Trump's tax cut initiative, spurring a $3.8 trillion increase in the national debt over the next decade.
In the midst of fiscal health worries, Treasury yields have spiked, though efforts to curb fears allowed bond prices to rise slightly. The appeal of 30-year bonds drew attention, while Asian markets observed highs in Japanese government bond yields. Meanwhile, the dollar weakened, gold poised for gains, and Bitcoin surged, signaling varied economic responses worldwide.
(With inputs from agencies.)
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