Mark O’Donnell
Blackbull Markets Limited
The Biden Administration has released details on two market shifting plans within 24 hours.
The first is a pledge by the US to slash its greenhouse gas emissions by up to 52% before we hit 2030. Alongside its domestic effort, the administration will be launching an International Climate Finance Plan to aid the worlds effort to cut emissions. Altogether, known as The US International Climate Finance Plan will overlap with the proposed US$2 trillion infrastructure and jobs spend-up announced by the Biden administration in March.
The clean energy sector is expected to benefit from the reinvigorated push to decarbonize much of the US economy. US and global clean energy indices and ESGs are yet to completely embrace a bullish sentiment in reaction. iShares Global Clean Energy ETF is up 2.43% over Thursday trading, but others have been slower to react. It would be hard to argue against the long-term bullishness of the sector.
Any bullishness in the cleantech sector has not been enough to overcome the bearishness over the whole US market on Thursday. All the major indices have fallen, with the likely cause being the second announcement detailed next.
Breaking news: The second announcement is a planned hike in the Capital Gains Tax for the wealthy. The new proposed rate is double the current rate and will boost funding for childcare and education.
The US markets on Thursday had an immediate adverse reaction to the announcement. Investor threw their toys out of the crib and tanked the major US indices. The S&P, for instance, dropped −0.92% over Thursday trading.
It will be interesting to see how the APAC markets open today in reaction. Most of the APAC markets ended in green yesterday, so a day’s buffer is there to be lost in any case.
Risk Warning: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money you cannot afford to lose. You should make yourself aware of all the risks associated with foreign exchange trading and seek advice from an independent financial adviser if you have any questions or concerns as to how a loss would affect your lifestyle.
Recommended Content
Editors’ Picks
AUD/USD pressures as Fed officials hold firm on rate policy
The Australian Dollar is on the defensive against the US Dollar, as Friday’s Asian session commences. On Thursday, the antipodean clocked losses of 0.21% against its counterpart, driven by Fed officials emphasizing they’re in no rush to ease policy. The AUD/USD trades around 0.6419.
EUR/USD extends its downside below 1.0650 on hawkish Fed remarks
The EUR/USD extends its downside around 1.0640 after retreating from weekly peaks of 1.0690 on Friday during the early Asian session. The hawkish comments from Federal Reserve officials provide some support to the US Dollar.
Gold price edges higher on risk-off mood hawkish Fed signals
Gold prices advanced late in the North American session on Thursday, underpinned by heightened geopolitical risks involving Iran and Israel. Federal Reserve officials delivered hawkish messages, triggering a jump in US Treasury yields, which boosted the Greenback.
Bitcoin Price Outlook: All eyes on BTC as CNN calls halving the ‘World Cup for Bitcoin’
Bitcoin price remains the focus of traders and investors ahead of the halving, which is an important event expected to kick off the next bull market. Amid conflicting forecasts from analysts, an international media site has lauded the halving and what it means for the industry.
Is the Biden administration trying to destroy the Dollar?
Confidence in Western financial markets has already been shaken enough by the 20% devaluation of the dollar over the last few years. But now the European Commission wants to hand Ukraine $300 billion seized from Russia.