Last week saw the conclusion of March, and with that, the end of the first quarter of 2021. Markets saw out the period on a positive note with most regions experiencing a shorter week in the build up to the Easter weekend. US equities finished the week up 1.1% while the FTSE 100 remained relatively unchanged, dipping less than 0.1%. The rest of Europe along with China and Japan also enjoyed a positive week, all recording steady climbs of roughly 2%.
While US companies have been performing significantly well in 2021, they could be subjected to a corporate tax hike proposed by President Joe Biden to fund a $2 trillion infrastructure improvement plan, separate to the recent $1.9 trillion stimulus package recently rolled out. The infrastructure package is an initial phase that seeks (amongst other things) to improve the crumbling roads and bridges across America. However, if approved, the programme would likely run over the next 10-14 years, and therefore not an immediate catalyst for change. With that said, the potential corporate tax hikes might not be instant but rather phased in over the next few years.