GLOBAL MARKETS-Wall St falls on capital tax increase angst; dollar rises

* Oil ticks up with eyes on virus, Libya
* Dollar index posts strongest gain this month

(Updates to U.S. market close)
By Rodrigo Campos
NEW YORK, April 22 (Reuters) - An index of stocks across the
world fell on Thursday weighed by Wall Street after reports that
the Biden administration will propose a sharp increase to
capital gains tax, while the dollar index rose as the euro and
pound gave back recent gains.
Oil prices rose as concerns over Libyan output more than
offset worries that rising coronavirus cases in India and Japan
would cause energy demand to decline.
On Wall Street, indexes ended lower after reports that the
Biden administration is seeking to raise the capitals gains tax
to near 40% for wealthy individuals, almost double the current
rate. The proposal would need congressional approval, and analysts
expected it to be watered down as it makes its way through
Congress. "If they're going to tax people more and their net is going
to fall, the value of that instrument is lower. Incentives
matter," said Kim Forrest, chief investment officer at Bokeh
Capital Partners in Pittsburgh.
"A lot of money that's in the market at this point is non
taxable, and I don't think people do that calculation. Whenever
they see news (like this), they just sell, they want to take the
gains this year."
The Dow Jones Industrial Average .DJI fell 321.41 points,
or 0.94%, to 33,815.9, the S&P 500 .SPX lost 38.44 points, or
0.92%, to 4,134.98 and the Nasdaq Composite .IXIC dropped
131.81 points, or 0.94%, to 13,818.41.
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.23% and the pan-European STOXX 600 index .STOXX rose 0.68%.
Emerging market stocks .MSCIEF rose 0.34%.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS closed 0.4% higher, while Japan's Topix .TOPX
rose 1.82%. Nikkei futures NKc1 were little changed.
Treasury yields fell alongside stocks on the capital gains
tax issue.
Benchmark 10-year notes US10YT=RR last rose 7/32 in price
to yield 1.5416%, from 1.564% late on Wednesday, remaining in a
tight range so far this week.
Oil prices ended higher as lower output in Libya more than
offset concern over demand from India, the third-largest global
consumer, where a second wave of coronavirus infections has
overwhelmed hospitals. U.S. crude CLc1 rose 0.52% to $61.67 per barrel and Brent
LCOc1 was at $65.60, up 0.43% on the day.
In currency markets, the dollar =USD rose as the pound
gave back some of its recent sharp gains while the euro was
weighed by an ECB statement that was hopeful on the economic
recovery but lacking in details about the stimulus removal.
U.S. Federal Reserve and Bank of Japan meetings follow next
week.
The dollar index =USD rose 0.178%, with the euro EUR=
down 0.15% to $1.2015.
The Japanese yen strengthened 0.10% versus the greenback at
107.96 per dollar, while Sterling GBP= was last trading at
$1.3841, down 0.63% on the day.
The Russian ruble rose against the dollar after Moscow
signaled an end to military drills near the Ukraine border,
easing some of the geopolitical risk premium.
The ruble strengthened 1.78% versus the greenback at 75.29
per dollar.
Turkish markets suffered under the weight of expectations
that U.S. President Joe Biden will formally recognize the
massacre of Armenians by the Ottoman Empire during World War One
as an act of genocide.
The lira lost 1.64% versus the U.S. dollar at 8.31.
Spot gold XAU= dropped 0.6% to $1,783.68 an ounce. Silver
XAG= fell 1.71% to $26.12.

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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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