Global shares extended gains after FED’s announcement

Global shares increased on April 29 after the Federal Reserve announced it was too early to consider rolling back emergency support for the economy. Moreover, Biden proposed a $1.8 trillion stimulus package.

The MSCI world equity index, which gauges shares in 49 countries, increased by 0.2%, on course for its best month since November.

The pan-European STOXX 600 opened 0.4% firmer. Meanwhile, E-mini futures for the S&P 500 index increased by 0.4%, and Nasdaq futures surged 0.6%.

Meanwhile, U.S. Treasury yields gained 1.8 basis points to 1.6486, still short of Wednesday’s two-week high. Meanwhile, eurozone government bond yields remained below two-month highs.

On Wednesday, Fed Chair Jerome Powell announced that it is not time yet to begin discussing any change in policy after the U.S. central bank left interest rates and its bond-buying program intact.

According to Francois Savary, chief investment officer at Swiss wealth manager Prime Partners, the Fed’s stance and strong U.S. corporate earnings were all supportive for markets.

Biden proposed the new $1.8 trillion plan in a speech to a joint session of Congress on Wednesday. He pleaded with Republican lawmakers to work with him on divisive issues.

U.S President also made an impassioned plea to raise taxes on corporations and wealthy Americans. Biden has also proposed nearly doubling the tax on investment income, which knocked stock markets last week.

the first estimate of U.S. GDP for Q1 will be published at 13:30 GMT

Moreover, MSCI’s broadest index of Asia-Pacific shares outside Japan built on early gains and surged 0.48%.

Australia’s S&P/ASX 200 rose by 0.25%, as strong oil prices boosted energy stocks, closing at their highest level in almost 14 months.

Meanwhile, China’s blue-chip CSI300 index increased by 0.88%.

Markets in Japan were closed for a holiday, but Nikkei futures gained 0.48%.

Furthermore, for the rest of the day, investors will focus on the first estimate of U.S. GDP for the first quarter, which is anticipated at 13:30 GMT.