{"id":105286,"date":"2017-04-27T07:56:25","date_gmt":"2017-04-27T11:56:25","guid":{"rendered":"http:\/\/countingpips.com\/?p=105286"},"modified":"2017-04-27T07:56:25","modified_gmt":"2017-04-27T11:56:25","slug":"unimpressed-investors-drag-equities-from-all-time-high","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/04\/unimpressed-investors-drag-equities-from-all-time-high\/","title":{"rendered":"Unimpressed investors drag equities from all time high"},"content":{"rendered":"
April 27, 2017<\/div>
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Article by ForexTime<\/a><\/p>\n

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Trump’s big tax reforms and tax reductions on Wednesday proved to be not so big, at least from Wall Street\u2019s perspective. U.S. equities shrugged off earlier gains after flirting with all-time highs, the dollar pared back some gains, and Treasury yields declined slightly from a two-week high.<\/p>\n

The market\u2019s reaction to the core principles of President Trump\u2019s tax plan, which included a cut to corporate tax from 35% to 15%, isn’t based on “buy the rumors sell the news” phenomenon, but it reflects investors\u2019 skepticism that the proposed cuts will be very difficult to pass through Congress.<\/p>\n

The lack of details contained on Trump\u2019s single piece of paper was perceived as a publicity stunt for the President as he celebrates his first one hundred days in the Oval Office, and unfortunately, seemed more of a wish list than a serious starting point.<\/p>\n

Many economists agree that it\u2019s almost impossible for the proposed plan to be revenue-neutral, and that\u2019s why Democrat and Republican deficit hawks will stand against it. Although I think we will see some sort of tax cuts and reforms, it\u2019s not likely to occur by August this year, and of course won\u2019t be of the proposed magnitude, which is likely to be a negative factor to the U.S. dollar and equities.<\/p>\n

The market’s focus will shift to the European Central Bank\u2019s monetary policy meeting later today. While no changes to asset purchases or interest rates are expected, Mario Draghi\u2019s tone will guide the Euro. During the month of April, economic data has shown a fair improvement in the Eurozone. Unemployment declined to an eight-year low, PMI\u2019s posted its strongest readings in six years, consumer confidence strengthened, and construction of buildings and infrastructure rose at its fastest pace in almost five years. On the downside, inflation levels slipped to 1.5% in March.<\/p>\n

The Euro will trade based on whether Mario Draghi looks at the glass half full or half empty. However, I find it difficult not to acknowledge the improvement in economic developments, and that\u2019s why I see\u00a0further potential for the single currency to move higher.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

Disclaimer: <\/strong>The content in this article comprises personal opinions and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/em><\/p>\n

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Article by ForexTime Trump’s big tax reforms and tax reductions on Wednesday proved to be not so big, at least from Wall Street\u2019s perspective. U.S. equities shrugged off earlier gains after flirting with all-time highs, the dollar pared back some gains, and Treasury yields declined slightly from a two-week high. The market\u2019s reaction to the […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-105286","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/105286","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=105286"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/105286\/revisions"}],"predecessor-version":[{"id":105307,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/105286\/revisions\/105307"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=105286"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=105286"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=105286"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}