European Markets to open higher
Trump Sends Dollar Tumbling
1. EU Markets set to open higher as investors shrug off Trump disappointment
Markets in Europe are set to open in positive territory on Tuesday as global investors digest concerns over President Donald Trump’s inability to deliver his campaign pledges. The dollar rose from a four-month low according to CNBC, which also highlights that concerns over key White House proposals have somehow dissipated. Trump’s failure to get a health-care reform bill approved in the House led many to think that he would not be able to implement tax cuts either.
Tuesday’s calendar is rather slim and the focus will be on U.S. Federal Reserve Chair Janet Yellen, who’s due to speak at the NCRC Annual Conference at 16:50 GMT. According to Investing.com, Fed Chair Janet Yellen, has more influence over the U.S. dollar’s value than any other person and if her comments are hawkish and suggest future rate increases they may also determine a short-term positive trend for USD crosses.
2. Dollar recovers after tumbling to multi-month lows
The dollar shrugged off yesterday’s losses which send the US currency to multi-month lows against its major peers after a “Trump trade” disappointment. The greenback took a beating yesterday as market participants saw the prospects for a U.S. fiscal spending boost from President Donald Trump significantly diminished, after he failed to pass a key healthcare reform bill. According to CNBC the dollar’s dip comes as the direct result of rising concerns that President Trump might not be able to push through the rest of his legislative agenda.
3. Dow slides along high-tax stocks as tax reform prospects dim
U.S. stocks closed mostly lower yesterday, March 27, as investors doubted whether key White House proposals, including a major tax reform, would come to fruition. The Dow Jones industrial average ended about 45 points lower while the 30-stock index also posted an eight-session losing streak! According to Bloomberg, investors shifted their attention to the prospects for the Trump administration’s plan to cut taxes, which now seems a rather unlikely scenario! The companies with the most at stake are high tax companies, including Goodyear Tire & Rubber Co. and Alliance Data Systems Corp. It should be noted that if the chances for passing cuts to corporate rates rise, so too will these shares.
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