European and US equities are recovering slightly after yesterday’s trading session. Donald Trump revealed his highly-anticipated tax plan, albeit without much detail. The US president has proposed to cut corporation tax from 35 to 15 percent. Additionally, Trump wants to simplify individual tax rates.
The administration hopes to stir up economic growth from the tax reductions. However, investors focus remained on the lack of detail from the announcement, which sent equities lower.
The plan will be hugely costly and therefore may be seen as a rough direction rather than a concrete plan.
The dollar is slightly down this morning as traders curtail their US bets.
- CAC 40 is up 0.05% at €5210.50
- DAX 30 is up 0.08% at €12465
- DJ 30 is up 0.08% at $20918
- S&P 500 is up 0.04% at $2382.50
- Russell 2000 is up 0.04% at $1417.20
The European Central Bank will hold a press conference later today.
The ECB will focus on inflation as well as forecasts for future interest rate decisions.
The euro is trading at 1.089 against the dollar, just slightly down from the beginning of the week.
Commodity Corner
Crude oil’s latest inventory reading was not enough to spur bullish bets. Storages surpassed expectations at -3.6 million barrels. Investors remain focused on longer-term supply woes and thus the price of the commodity remains subdued at $49.17.
Market Watchlist
Ethereum is up 7.4% today at $62.50. The digital currency is on an upward momentum, at the highest price it has every reached. If the cryptocurrency advances past $65, there should be a forceful bullish trend.
News Today
11:45 GMT EUR Minimum Bid Rate
12:30 GMT EUR ECB Press Conference
14:30 GMT USD Natural Gas Storage