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Stock market welcome for Trump tax plans fades fast

LONDON (AFP) – A rebound in sentiment after US President Donald Trump unveiled market-friendly tax cut plans proved short-lived as stocks traded mixed on Thursday.

The Dow edged out meagre gains by late morning trading, but the broader S&P 500 was flat and the tech-heavy Nasdaq down.

In Europe, equities advanced modestly, while Asian indices struggled to track Wall Street s Wednesday gains, despite a broad move back to riskier assets like equities.

“US stocks are lower in early action, coming off the modest rebound yesterday, with the markets grappling with increased Fed rate hike expectations and scrutiny of yesterday s release of tax reform details,” said analysts at Charles Schwab stock brokerage.

After months of waiting, Trump released a tax reform blueprint that would slash corporate rates, provide relief for firms that repatriate cash from overseas, and reduce the number of tax brackets from seven to three.

The tycoon described it as “the largest tax cut, essentially, in the history of our country”.

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