Markets waiting for Trump's tax reform

US stock futures have grown slightly, hours before the long-awaited introduction of Trump's tax plan. The US president is expected to unveil his plan for tax reform during a speech in Indianapolis at 22:00 GMT+3.

The plan has been developed for several months by six Trump and Congress administrators working in closed doors without Democrats' input. So far, the Republicans controlling the White House and the two Chambers of Congress have failed to achieve a significant legislative victory on the subject since Trump entered office in January.

The expectations of most market participants are Trump to offer tax cuts from 35% to 20%, with the wealthier paying higher taxes, but no more than 35%. Washington officials, however, expect a battle in Congress because MPs disagree with the main elements of the fiscal plan.

Today, we also expect data on purchases of durable goods in the US at 15:30, with expectations for a 1.0% growth. The data will most likely be distorted against the devastation of the two hurricanes, Harvey and Irma, and so markets are expected to reflect the news less.

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

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