On 26 April, 2017 – Global stocks continued their rally Wednesday

However, US shares weakened after the release of the administration’s tax proposals.
United States
US stock indices were up modestly as investors waited for the Trump administration’s tax revision proposals. However, shares pared gains after the administration’s tax reform plan was unveiled. Briefly, the plan proposes to cut the US tax rate on corporate pass-through business profits to 15 percent from 35 percent or more. Vast changes to personal taxes were also proposed. The Dow Jones industrials slipped 0.1 percent and the S&P and Nasdaq were virtually unchanged.
Investors also parsed corporate earnings. United Technologies advanced after reporting a quarterly profit that beat expectations. Boeing was lower after it reported a revenue decline. Procter & Gamble was lower after reporting lower quarterly profit. Edwards Lifesciences jumped after it reported strong quarterly revenue and raised its full-year earnings forecast. Twitter rallied after reporting a strong rise in monthly active users and a quarterly profit that beat expectations. Wynn Resorts was higher after the casino operator reported better-than-expected revenue from its new casino in China’s gambling territory. US Steel tumbled after the company’s profit and revenue missed expectations. Chipotle Mexican Grill gained after it reported its first increase in a key sales measure in more than a year, while shares of PepsiCo declined after earning results.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was down US$5.95 to US$1,261.85. Copper futures were up 0.48 percent to US$2.60. WTI spot crude was down 27 US cents to US$49.29. Dated Brent spot crude was down 55 US cents to US$51.55. The US dollar was up against the euro and the Canadian and Australian dollars. It declined against the pound and yen. The currency was unchanged against the Swiss franc. The Dollar Index was up 0.2 percent. The yields on both the US Treasury 30 year bond and the 10 year note were down 3 basis points to 2.96 percent and 2.30 percent respectively.
Europe
Most European stock indices advanced in choppy trading Wednesday. Investors were cautious ahead of the Trump administration’s big tax reform announcement later in the global market day and tomorrow’s European Central Bank’s monetary policy. Both the FTSE and CAC were up 0.2 percent and the SMI added 0.6 percent. The DAX was virtually unchanged (up 5.76 points). The IBEX retreated 0.2 percent.
The European Central Bank is widely expected to keep its interest rates unchanged for a ninth consecutive policy meeting. The ECB is also expected to retain its asset purchases of €60 billion a month till December 2017. According to Germany’s Economy Ministry, the economy remains on a growth path despite global uncertainties. The ministry forecast 1.5 percent growth this year and 1.6 percent in 2018.
Daimler advanced after its first quarter earnings per share improved to €2.53 from €1.26 in the prior year. Kering jumped after its first-quarter revenue beat expectations. Standard Chartered climbed after it said that its profit was $1.045 billion for the first quarter compared with $539 million last year, excluding restructuring and other items. Croda International gained after its first quarter currency sales increased by 19.1 percent to £365.5 million from £306.8 million. Credit Suisse climbed in Zurich. The bank plans to raise 4 billion Swiss francs ($4.02 billion) in a rights offer after abandoning plans for a partial sale of its Swiss unit. Logitech International was higher after the company delivered its highest retail sales growth in six years.
Fresnillo declined after it reported that its first quarter gold production was down 3.3 percent from prior year. BHP Billiton was up after it scaled back guidance for annual production of coking coal and copper after a cyclone battered eastern Australia last month and a lengthy strike at the Escondida mine in Chile. BHP also narrowed its forecast for iron-ore output for the fiscal year. Antofagasta was up after it reaffirmed its 2017 production outlook as it reported a 9.4 percent increase in first-quarter copper production compared with the year before. Fiat Chrysler jumped after reporting an 11 percent increase in first-quarter operating profit.
Asia Pacific
Asian shares extended their recent gains thanks to strong earnings and expectations that the Trump administration would unveil a new tax plan on Wednesday after markets here were closed for the day. The yen continued to weaken before the Bank of Japan and European Central Bank meetings.
The Shanghai Composite was up 0.2 percent after China’s politburo said the country will continue to adopt a proactive fiscal policy and prudent monetary policy. The Hang Seng added 0.5 percent. This week, Hong Kong stocks have rebounded after a two-week losing streak as the first round of French presidential elections signaled strong prospects for Emmanuel Macron, a pro-European Union candidate also seen as business-friendly. Sentiment has also been bolstered after the Trump administration last week promised a “big announcement” on Wednesday related to his proposed tax reforms for businesses and individuals.
The Nikkei gained 1.1 percent and the Topix was 1.2 percent higher as the US dollar strengthened against the yen on optimism about the outcome of the French presidential election and Trump’s expected big tax reform. Exporters Canon, Panasonic, Toshiba, Honda Motor and Toyota climbed along with Mitsubishi UFJ Financial. Inpex and Japan Petroleum also were higher.
The S&P/ASX and All Ordinaries were 0.7 percent and 0.6 percent higher respectively. Investors shrugged off sluggish economic reports, with a measure of consumer sentiment declining while the first quarter consumer price index fell short of market expectations, helping support expectations of a benign interest rate outlook. The big four banks were up. BHP Billiton gained after it unveiled plans to sell some of its US shale acreage. Rio Tinto also advanced after Chinese steel futures climbed more than 2 percent to a 1-1/2-week high. Woodside Petroleum, Santos, Origin Energy and Oil Search gained.
The Kospi was 0.5 percent higher, extending gains for a fifth day to close at a fresh six-year high on hopes for improved corporate earnings. The Sensex was 0.6 percent higher.
Looking Forward
The Bank of Japan announces its monetary policy decision. The European Central Bank also announces its monetary policy decision. The Eurozone’s April business and consumer sentiment is released. In the US, March durable goods orders and March international trade in goods are reported along with weekly jobless claims, money supply and Fed balance sheet.
Global Stock Markets

*Note — all releases are listed in local time.

Source: Fidelity

Fidelity disclaimer:

The objective of this page is to present users with objective news, information, data and guidance on personal finance topics drawn from a diverse collection of sources including affiliated and non-affiliated financial services publications. Content is not intended to provide tax, legal, insurance or investment advice and should not be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security or investment by any Fidelity entity or any third-party.

Jesmond Mizzi Financial Advisors Disclaimer:

This article, does not intend to give investment advice and the contents therein should not be construed as such. Jesmond Mizzi Financial Advisors Limited is licensed to conduct investment services by the MFSA and is a Member Firm of the Malta Stock Exchange. The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article. For further information contact Jesmond Mizzi Financial Advisors Limited at 67, Level 3, South Street, Valletta, or on Tel: 21224410, or email [email protected]