Biden’s spending plans and the UK stocks that can benefit

“This is not a plan that tinkers around the edges…it’s a once in a generation investment in America.”

The new package is said to include an additional $2 trillion in infrastructure investments and manufacturing subsidies, mostly funded by corporate tax rises.

A ‘tax and spend’ approach unsurprisingly has met swift opposition from Republicans and securing approval through congress will be far from straightforward.

However, should Biden manage to negotiate a compromise in the same way he did for the fiscal stimulus package, it could have a big impact on certain UK stocks which have exposure to the US infrastructure market.

Ashtead (AHT)

Owner of Sunbelt – a US based construction and industrial equipment rental business with over 800 stores. The shares have formed a powerful long-term uptrend and have just broken out from a ‘consolidation box’ pattern.

CRH (CRH)

CRH’s Americas Materials Division is the leading vertically integrated supplier of materials, paving and construction services across North America. The shares have recently pushed up into a key area of resistance. However, should prices break above this resistance, it would signal the start of a new trend leg higher.

Ferguson (FERG)

Plumbing giant Ferguson is focused on the US and operates 1,442 branches serving all 50 states with approximately 27,000 associates. The shares are currently going through a prolonged period of sideways consolidation, but give the strength of the shares long-term uptrend, we’d expect this consolidation phase to resolve in higher prices.

Somero (SOM)

AIM-listed Somero is a world leader in concrete screeding and it primary market is the US. The shares have formed a powerful long-term uptrend and are currently consolidating just below resistance at 395p.