Market Snapshot – World Stocks Near Record Highs, Trump’s Tax Reform in Focus

Global Stocks Near Record Highs Ahead of Trump Tax Reform Announcement

A lack of material macroeconomic data through the day will certainly leave the markets with very little to consider, by which time the markets will have Trump’s tax reforms on the table and there will also be a more educated guess on whether Congress will approve yet another spending bill, the deadline for approval being midnight 28^thApril.

Investors are waiting to hear more about Trump’s tax reform. His proposal is expected to cut income tax rate to 15% from 35%.

North Korea Worries Remain in Focus

Markets will also be cognizant of tensions between North Korea and the U.S after Donald Trump invited 100 senate members for top level white house briefing on North Korea.

As the conflict heats up, the North Korea threat over the American economy become tangible. North Korea celebrates Army Day and is expected to perform another missile test as US submarine docks in the south.

Oil Prices Slip Ahead of Inventory Report

Crude Oil futures are trading lower as investors prepare for the release of the U.S Energy Information Administration’s weekly inventories report. Traders are looking for a 1 million barrel draw, but we could see a surprise since the American Petroleum Institute’s report showed a build instead of a draw.

Crude oil is down 0.77% at $49.18 a barrel, brent oil is down 0.80% at $52.15.

Australian Dollar Drops after Disappointing CPI

The AUD/USD is trading sharply lower ahead of the U.S. session. Traders are reacting to a disappointing consumer inflation report. Sellers came in early in the session after first quarter inflation missed expectations. Australia’s headline inflation during the March quarter was 0.5%. This was below the forecast of 0.6%. Yearly inflation did creep back inside the Reserve Bank’s target zone of two to three percent at 2.1%, but investors were looking for 2.2%.

AUD/USD is currently trading at 0.7477, down 0.80%.