Trump tax to fuel ASX

Wall Street’s main indexes gained overnight onĀ a burst of optimism fuelled by hints that President Donald Trump may finally be making headway on long-promised tax cuts.

On Wall St, the Dow rose 0.3 per cent, the S&P 500 rose 0.4 per cent and the Nasdaq climbed 1.2 per cent.

Nike fell more than 3 per cent after posting its slowest quarterly sales growth in nearly seven years and saying it expects a further drop in revenue from North America.

US President Donald Trump and senior Republicans settled on a bold and expensive tax cut plan to boost America’s international competitiveness.The plan calls for lowering the corporate tax rate to 20 per cent from 35 per cent; though the current effective tax rate for US companies is 24 per cent. It also calls for a simpler tax code.

In addition, the Commerce Department said non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, rose 0.9 percent last month after an upwardly revised 1.1 per cent gain in July.

“The manufacturing sector appears to be a bright spot in the US economy,” said John Ryding, chief economist at RDQ Economics in New York.

European stocks climbed to a 10-week high on Wednesday, with Alstom shares surging after announcing rail merger with Siemens.

The pan-European STOXX 600 gained 0.3 per cent to hit its highest level since July 20, while euro zone stocks rose 0.4 per cent.

Banks hit a six-week high, up 1.3 per cent, as the prospect of fiscal stimulus in the US resurfaced.

By country, the FTSE rose 0.4 per cent and the CAC climbed 0.3%, DAX rose 0.4%.

Germany took a first decisive step on Wednesday toward forming a new government when its veteran finance minister, conservative Wolfgang Schaeuble, agreed to become president of the parliament, clearing the way for another party to take his job.

Leave a Reply

Your email address will not be published.

twenty − three =