Asian shares rose on Friday and a gauge of global equities edged closer to record highs after U.S. President Joe Biden embraced a bipartisan Senate infrastructure deal, raising hopes for an extended rebound in the world’s largest economy.
Investors have been looking to an infrastructure agreement to extend the U.S. recovery after massive fiscal stimulus helped the U.S. economy grow at a 6.4% annualized rate in the first quarter. The plan is valued at $1.2 trillion over eight years, $579 billion of which is new spending.
Futures pointed to a higher open for share markets in Europe. Pan-region Euro Stoxx 50 futures added 0.18, DAX futures rose 0.16% and France’s CAC 40 futures were up 0.17%. FTSE futures edged 0.03% higher.
“The positive market tone recognizes the potential growth benefits of the compromise, but with the smaller size tempering some of the tax implications to pay for it,” said Kerry Craig, global market strategist at J.P. Morgan Asset Management.
Securing bipartisan agreement on the deal required Biden to sacrifice some of his original ambitions on schools, climate change mitigation, and support for parents and caregivers, as well as tax increases on the rich and corporations.
