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Global stocks mixed as investors await Trump tax cut plan

LiveMint logoLiveMint 26-04-2017 AP

Seoul: Shares were mixed in Europe on Wednesday after another day of gains in Asia as investors awaited US President Donald Trump’s announcement on tax cuts that could give a boost to US companies and household spending.

Keeping score

Britain’s FTSE 100 lost 0.1% to 7,272.31 while France’s CAC 40 added 0.1% to 5,283.04. Germany’s DAX was steady at 12,463.31. Wall Street looked set for a tepid start, with Dow futures up 0.1% and S&P futures down less than 0.1%.

US tax reform

Trump plans to reveal details of big tax cuts for businesses later on Wednesday as part of a sweeping overhaul of the tax system. White House officials said the plan would reduce the top corporate income tax rate from to 15% from 35%. Expectations businesses will pay lower taxes have been boosting share prices since late last year.

Analyst’s viewpoint

“In spite of concerns that the Trump administration will be unable to deliver his fiscal stimulus promises any time soon, many investors remain hopeful of future reforms, particularly after the White House signalled this week that it plans to introduce legislation aimed at reducing the corporate tax rate,” said Margaret Yang, a market analyst at CMC Markets Singapore. Investors expect the tax cuts would improve US companies’ profitability and encourage household spending, Yang said.

Asia’s Day

Japan’s Nikkei 225 jumped 1.1% to 19,289.43 and South Korea’s Kospi rose 0.5% to 2,207.84. Hong Kong’s Hang Seng index advanced 0.5% to 24,578.43 and the Shanghai Composite Index was up 0.2% to 3,140.85. Australia’s S&P/ASX 200 rose 0.7% to 5,912.00. Stocks in Taiwan, Singapore and Indonesia were also higher.


Benchmark US crude oil lost 14 cents to $49.42 per barrel in electronic trading on the New York mercantile exchange. The contract rose 33 cents to $49.56 per barrel on Tuesday. Brent crude, which is used to price international oils, fell 13 cents to $52.44 per barrel in London.


The euro fell to $1.0902 from $1.0930 while the dollar rose to 111.19 yen from 111.09 yen.

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