Global shares range bound

8 June, 2021 12:00 AM printer

NEW YORK: World shares were range bound on Monday as markets digested Friday’s disappointing U.S. jobs report and a global tax deal between the G7 group of countries, while also looking ahead to inflation data due this week.

Investors were wary about how shares of major tech firms would react to the G7’s agreement on a minimum global corporate tax rate of at least 15%, although securing approval from the whole G20 could be a tall order, reports AFP.

So far, the reaction was muted with Nasdaq futures down 0.4% and S&P 500 futures down 0.2%.

“I would assume that it (the tax deal) is not helping the market in the sense that these Internet giants are going to be taxed has an impact on sentiment in equity markets, but the reality is it has already been priced in,” said Sebastien Galy, senior macro strategist at Nordea Asset Management.

“So even though equity markets in the U.S. are under pressure on the futures side, I’d expect it not to last till the end of the day.”

European shares opened lower, easing from all-time highs with commodity shares leading declines as sentiment soured after weaker-than-expected China trade data and worries about inflation.

MSCI’s All-Country World index, which tracks shares across 49 countries, traded just below record highs and was flat on the day after the start of European trading.

MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.05% and risked a fourth session of losses. Japan’s Nikkei edged up 0.3% and touched its highest in almost a month.