* MSCI world shares set for best month since Nov.
* Fed position, $1.8 trillion stimulus supportive
* U.S. Treasury yields firmer
* Dollar off 9-week lows
* First estimate of U.S. Q1 GDP awaited
* World FX rates https://tmsnrt.rs/2RBWI5E
By Tom Arnold and Kane Wu
LONDON/HONG KONG, April 29 (Reuters) - Global shares
extended gains on Thursday after the Federal Reserve said it was
too early to consider rolling back emergency support for the
economy, and U.S. President Joe Biden proposed a $1.8 trillion
stimulus package.
The MSCI world equity index .MIWD00000PUS , which tracks
shares in 49 countries, was 0.2% higher, on course for its best
month since November.
The pan-European STOXX 600 .STOXX opened 0.4% firmer,
while E-mini futures for the S&P 500 index ESc1 rose 0.4% and
Nasdaq futures NQcv1 advanced 0.6%.
U.S. Treasury yields US10YT=RR advanced 1.8 basis points
to 1.6486, still short of Wednesday's two-week high, while euro
zone government bond yields remained below two-month highs.
Fed Chair Jerome Powell said on Wednesday 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
programme unchanged, despite taking a more optimistic view of
the country's economic recovery. The Fed's stance, strong U.S. corporate earnings and the
notion that Biden is going big on infrastructure were all
supportive for markets, said François Savary, chief investment
officer at Swiss wealth manager Prime Partners.
"The Fed confirmed the roadmap for any change in policy,
which is a reassuring factor," he said. "It looks like tapering
won't materialise until 2022 and that has induced weakness for
the dollar, is supportive of market liquidity and means less
pressure on emerging markets."
HUGE STIMULUS
Biden proposed the sweeping new $1.8 trillion plan in a
speech to a joint session of Congress on Wednesday, pleading
with Republican lawmakers to work with him on divisive issues
and to meet the stiff competition posed by China.
He also made an impassioned plea to raise taxes on
corporations and rich Americans to help pay for what he called
the "American Families Plan" in his maiden speech to Congress.
He has also proposed nearly doubling the tax on investment
income, which knocked stock markets last week. Stephen Dover, Franklin Templeton's chief market strategist
in California, said the effect of the tax package on markets is
hard to measure for now.
"If it passes, I think it will have an impact on individual
stocks that will pay a higher rate of tax or companies with
founders who will pay capital gains and could sell stocks," he
said.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS built on early gains and added 0.48%.
Australia's S&P/ASX 200 .AXJO edged up 0.25%, as strong
oil prices lifted energy stocks, closing at their highest level
in nearly 14 months.
China's blue-chip CSI300 index .CSI300 was 0.88% higher.
Markets in Japan were closed for a holiday but Nikkei
futures NKc1 rose 0.48%.
For the rest of the day, investors will focus on the first
estimate of U.S. GDP for the first quarter, which is expected at
13:30 GMT.
DOLLAR IN DOLDRUMS
The Fed's doggedly dovish outlook and the White House's
spending plans hampered the dollar, which traded just off
nine-week lows.
Against a basket of currencies, the greenback was at 90.622
=USD , and a long way from the rally peak of 93.439 hit at the
end of March.
The euro hit its highest since late February at $1.2150
EUR=EBS , before steadying at $1.2121.
Oil prices extended gains on Thursday as bullish forecasts
for a demand recovery this summer offset concerns of rising
COVID-19 cases in India, Japan and Brazil.
Brent crude LCOc1 for June rose 0.39% to $67.53 a barrel,
while U.S. West Texas Intermediate crude CLc1 for June was at
$64.06 a barrel, up 0.31%.
Spot gold XAU= added 0.1% to $1,779.63 an ounce.
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