skip to Main Content
Get your free newsletter: Actionable insight each morning for self-directed investors. 
Home » News » Indices » US tax reform details maintain Dollar momentum

The major European indexes opened flat this morning after a positive US close yesterday, that extended into the major Asian indexes overnight.

“This on revived and increased hopes of President Trump succeeding in implementing significant US tax reform after unveiling a framework that would benefit many listed corporates” suggested Accendo Markets analyst, Mike van Dulken. “It would also be the first element of fiscal stimulus to accompany the Fed on its path of policy tightening.”

The dollar has extended the gains it made yesterday following Federal Reserve Chair, Janet Yellen’s comments after President Trump presented his tax reforms plan.

ADS Securities analyst, Konstantinos Anthis noted “The US President and the Republican leadership appeared to be on the same page on the reforms but unfortunately for dollar bulls Trump’s plan was once again rather light in details.”

“Nevertheless, the US dollar gained across the board and the index has reached a new monthly high but the truth is that most of these gains have to be attributed to Fed’s bullish views and their intention to raise rates one more time in December.”

“Having said that, if we see swift progress on the tax reform agenda then this could be the catalyst for a strong Q4 for the greenback but for that to take place more details about the President’s plans are needed.”

The US equity markets reacted positively to a more detailed framework of the Trump administration’s tax reform plan, “most notably Tech stocks expected to benefit from a repatriation tax holiday” noted Mike van Dulken.

“This was reflected in the Nasdaq’s outperformance, rallying over 1%, while the Dow Jones ended a 4-day losing streak thanks to gains for Financials and the S&P 500 touched a fresh intraday all-time high, although failed to notch a fresh closing high.”

Looking at the day ahead, Spreadex analyst, Connor Campbell suggested “While there is a bumper selection of US items to liven up this afternoon – including the final Q2 GDP reading and a speech from FOMC member Stanley Fischer – there isn’t quite as much intrigue in Europe this morning.”

“That is unless Mark Carney’s address to celebrate 20 years of Bank of England independence is more substantial that one would perhaps expect it to be.”

Oops! We could not locate your form.

This article is not investment advice. Investors should do their own research or consult a professional advisor.

Michael Morton

Michael Morton

Michael has worked within the Financial Industry for more than 20 years. Starting out as a financial analyst, he has extensive experience working with fund management groups and brokerages.

With an interest in Stocks and Shares, Funds, ETFs and Commodities, his investment focus is medium to long term gains, with the objective of financial security on retirement, and building wealth for his young children for their adult life. His broker of choice is Hargreaves Lansdown.

Stocks in Focus

Here are some of the smaller companies we follow most closely. They represent significant growth stories in our view. Our in-depth reports detail why we like them.


This Post Has One Comment

Subscribe for more stories like this, 8am weekdays - for free!

Get your free daily newsletter: 

Thanks to our Partners

Our partners are established, regulated businesses and we are grateful for their support.

FP Markets
Back To Top