Breaking News

Tax Reform And Metals Stem The Rot

By CMC Markets (Ric Spooner)Market OverviewApr 21, 2017 10:54
Tax Reform And Metals Stem The Rot
By CMC Markets (Ric Spooner)   |  Apr 21, 2017 10:54
Saved. See Saved Items.
This article has already been saved in your Saved Items

Originally published by CMC Markets

The positive lead from the US profit reporting season, hopes that US tax reform might be achieved by this year after all, and a bounce in metals prices will put sellers on the back foot this morning with the S&P/ASX 200 likely to finish the week on a positive note.

US Secretary Steve Mnuchin’s comments on tax reform were well timed. They came as bond buying and US dollar selling based on the unwinding of the Trump trade appeared to be losing momentum anyway. While Mr. Mnuchin’s advice that progress has been made on tax reform will give traders reason to pause, market reaction has been guarded. Given the experience with health reform, markets are likely to wait for more tangible evidence that reform can be achieved and details of what it will entail, before becoming too confident.

The ASX 200 is likely to benefit from last night’s bounce in metal prices that should see support for mining stocks today. Last weekend’s solid data on China’s economy including ongoing credit creation and improved industrial production make it difficult to be too pessimistic about this sector.

Traders will also be watching whether a couple of yesterday’s trends can continue this morning. One will be the bargain hunting in Telco stocks with Telstra Corporation Ltd. (AX:TLS) now approaching the 38.2% Fibonacci retracement level at $4.27. The other is whether confirmation of Amazon’s expansion in Australia will lead to continued selling of retail stocks like Myer Holdings Ltd (AX:MYR) and Harvey Norman Holdings Ltd (AX:HVN). The Amazon (NASDAQ:AMZN) news has been long anticipated and it will be some time before its expanded business commences operation.

Market optimism may be somewhat curtailed by concerns over Sunday’s French election. However, given the uncertainty of the outcome markets may leave their response until after the result is known.

Tax Reform And Metals Stem The Rot

Related Articles

Tax Reform And Metals Stem The Rot

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Write your thoughts here
Replace the attached chart with a new chart ?
Post also to:
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email