‘Trump trade’ fizzles amid tax doubts

The so-called “Trump trade” did little to drive global stocks higher as investors tried to assess what parts of the giant US economy would benefit from the tax cuts proposed by the president.

Traders said that there was a growing feeling that much of the gains for US stocks since the election of President Donald Trump had already been priced in. There was also growing scepticism about how much of the proposed overhaul of taxes will be accepted by Congress.

“European markets have seen marginal gains today, as the optimism surrounding Trump’s tax plans seems to have run out of steam...it is clear that despite the potential bounty for the US economy, there is a great deal of scepticism over the timing and ability to deliver such reforms,” said Joshua Mahony, market analyst at IG.