(MENAFN- Gulf Times) Global markets trod water yesterday as a recent strong run sparked by Donald Trump's election lost momentum and investors digested a fresh batch of European corporate earnings and minutes from the US Federal Reserve.
Nevertheless, Wall Street edged mainly higher and the Dow Jones Industrial Average looked set to reach a tenth consecutive all-time high and break a 30-year record.
And investors pondered statements from Treasury Secretary Steven Mnuchin, who said that President Donald Trump's administration hoped to roll out new tax policies before the August recess on Capitol Hill.
'Numerous corporate results... and typically vague minutes from the latest US interest rate-setting meeting have given investors pause for thought, said London Capital Group analyst Jasper Lawler.
'US stocks opened lower amid interest-rate uncertainty but soon turned higher to print yet another fresh record high for the Dow and S & P 500 as Treasury Secretary Mnuchin promised ‘very significant' tax reforms would be passed by August, Lawler said.
Appearing on CNBC yesterday morning, Mnuchin said the Trump administration hoped to have a tax package enacted before August and return to 3% annual economic growth by the end of next year.
Mnuchin's remarks were likely to help keep markets at their current dizzy heights by keeping hopes of prompt tax cuts alive, according to Patrick O'Hare of Briefing.com.
'From that standpoint, the old thought of tax reform continues to have staying power as a source of support that is keeping selling efforts in check, he wrote.
Asian markets had ended the session lower as the recent Trump rally that has inflated global stocks since the beginning of the year finally appeared to run out of steam.
The day before, New York's Dow index had racked up a ninth successive all-time high, but analysts said there was a sense that the advance may have gone too far.
'The minutes of the Federal Open market Committee ... were hardly a surprise but they did disappoint investors who had been hoping, perhaps unreasonably, that they would hint at a rate increase next month. They didn't, so the dollar retreated, said analysts at MoneyCorp in a note.
In Europe, a flurry of corporate earnings reports included British bank Barclays which said it had returned to profit after slashing provisions set aside for legal and compensation costs linked to foreign exchange and insurance scandals.
London's FTSE-100 was down 0.4% at 7,271.37, Frankfurt's DAX 30 lost 0.4% at 11,947.83 and in Paris CAC 40 was down 0.1% percent at 4,891.29 at close yesterday.
The heavily-indebted Spanish telecoms giant Telefonica said its net profit was hit by restructuring costs linked to a voluntary redundancy scheme.
And in France, carmaker PSA Peugeot Citroen said its profits nearly doubled and its takeover of Germany's Opel would create a 'European champion in the auto industry.
MENAFN2402201700670000ID1095265584
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.