{"id":113680,"date":"2017-09-28T06:45:16","date_gmt":"2017-09-28T10:45:16","guid":{"rendered":"http:\/\/countingpips.com\/?p=113680"},"modified":"2017-09-28T06:25:02","modified_gmt":"2017-09-28T10:25:02","slug":"us-stocks-rise-on-trump-tax-cut-plan","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/09\/us-stocks-rise-on-trump-tax-cut-plan\/","title":{"rendered":"US stocks rise on Trump tax cut plan"},"content":{"rendered":"
September 28, 2017<\/div>
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By IFCMarkets<\/a><\/p>\n

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Financial shares lead US stocks higher<\/h2>\n<\/div>\n<\/div>\n

US stocks<\/b>\u00a0advanced on Wednesday as President Donald Trump and congressional Republicans announced a tax overhaul proposal. The dollar strength persisted: the\u00a0live dollar index<\/a>\u00a0data show the ICE US Dollar index, a measure of the dollar\u2019s strength against a basket of six rival currencies, gained 0.5% to 93.428. The\u00a0S&P 500<\/a>\u00a0jumped 0.4% settling at 2507.04 led by financial shares. The\u00a0Dow Jones\u00a0<\/em>rose 0.3% to 22340.71 with gains in JP Morgan offsetting 1.9% drop in Nike.\u00a0Nasdaq\u00a0<\/em>composite jumped 1.2% to 6453.26.<\/p>\n

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Treasury yields and bank stocks rose after President Trump and Republican leaders presented proposal to cut the top corporate tax rate to 20% from 35%, cut taxes for small businesses and reduce the top income tax rate for individuals as part of an overhaul of the US tax code. Expected tax cuts is a fiscal stimulus which can boost US economy. This revived the Trump reflation trade which drove the stock market rally as President Trump pledged to enact stimulus measures such as tax cuts, infrastructure spending programs and deregulation during election. Two more Fed officials spoke about their view on monetary tightening after Fed chair Yellen said on Tuesday it would be \u201cimprudent\u201d to leave monetary policy on hold until inflation hits the central bank\u2019s 2% target. Louis Fed President James Bullard said there was no need for the central bank to raise interest rates soon because the US economy would stay stuck in a low-growth environment. Boston Fed President Eric Rosengren said \u201cregular and gradual removal of monetary accommodation seems appropriate\u201d, expressing his support for further rate hikes. Economic news were mixed: August durable goods orders jumped 1.7%, while pending home sales fell 2.6%, the lowest reading since January 2016.<\/p>\n<\/div>\n<\/div>\n

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Bank shares lead European markets higher<\/h2>\n<\/div>\n<\/div>\n

European stocks\u00a0<\/b>extended gains on Wednesday led by bank shares. Both the\u00a0euro\u00a0<\/em>and\u00a0British Pound\u00a0<\/em>continued the slide against the dollar. The Stoxx Europe 600 index rose 0.4%. Germany\u2019s\u00a0DAX 30\u00a0<\/em>gained 0.4% to 12657.41 helped by 1.2% gain in Siemens shares on news Alstom and Siemens agreed to merge their rail operations. France\u2019s\u00a0CAC 40\u00a0<\/a>added 0.3% and UK\u2019s\u00a0FTSE 100\u00a0<\/em>rose 0.4% to 7313.51. Indices opened 0.2% – 0.4% higher today.<\/p>\n

\"GB<\/p>\n

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Asian indices mixed<\/h2>\n<\/div>\n<\/div>\n

Asian stock indices<\/b>\u00a0are mixed today.\u00a0Nikkei\u00a0<\/em>rose 0.5% to 20363.11 as yen extended losses against the dollar. Chinese stocks are down on profit taking ahead of weeklong National Day holiday in China: the\u00a0Shanghai Composite Index is 0.2% lower and\u00a0<\/em>and Hong Kong\u2019s\u00a0Hang Seng Index\u00a0<\/em>is down 0.3%. Australia\u2019s All Ordinaries Index added 0.1% despite helped by gains in bank stocks and continued slide in Australian dollar against the greenback.<\/p>\n

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Oil lower despite US inventory draw<\/h2>\n<\/div>\n<\/div>\n

Oil futures prices\u00a0<\/b>are extending losses today. Prices fell yesterday despite US government data showing a bigger than expected 1.8 million barrels draw in crude supplies. However data showed a surprise 1.1 million barrel rise in gasoline stocks. November Brent crude lost 0.9% to $57.90 a barrel on Wednesday on London\u2019s ICE Futures exchange.<\/p>\n

Market Analysis provided by IFCMarkets<\/a><\/p>

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Note:
\nThis overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or \u0430 recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.<\/p>\n","protected":false},"excerpt":{"rendered":"

By IFCMarkets Financial shares lead US stocks higher US stocks\u00a0advanced on Wednesday as President Donald Trump and congressional Republicans announced a tax overhaul proposal. The dollar strength persisted: the\u00a0live dollar index\u00a0data show the ICE US Dollar index, a measure of the dollar\u2019s strength against a basket of six rival currencies, gained 0.5% to 93.428. The\u00a0S&P […]<\/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-113680","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/113680","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=113680"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/113680\/revisions"}],"predecessor-version":[{"id":113693,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/113680\/revisions\/113693"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=113680"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=113680"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=113680"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}