EUROPE MARKETS: European Stocks Log Fresh 20-month High Ahead Of Trump Tax Unveiling
27 April 2017 - 02:23AM
Dow Jones News
By Carla Mozee and Sara Sjolin, MarketWatch
Credit Suisse plans to raise $4 billion in new capital
European stocks ended a choppy session in positive territory on
Wednesday, building on the previous days' rally as investors waited
for U.S. President Donald Trump's tax-revamp plan.
The Stoxx Europe 600 added 0.5% to close at 388.73, ending at
the highest level since August 2015.
Kering SA (KER.FR) topped the Stoxx 600, surging 9.7% after the
owner of the Gucci and Saint Laurent luxury brands said
first-quarter revenue surged 31% to 3.57 billion euros
(http://www.marketwatch.com/story/gucci-owner-kering-revenue-climbs-31-2017-04-25)
($4.07 billion).
Meanwhile, Credit Suisse Group AG (CSGN.EB) (CSGN.EB) shares
tacked on 2.7%. The lender plans to raise 4 billion Swiss francs
(http://www.marketwatch.com/story/credit-suisse-to-raise-4-bln-to-drop-swiss-ipo-2017-04-26)
($4.02 billion) in fresh capital and posted a first-quarter profit
of 596 million Swiss francs that topped analyst expectations.
On a broader scale, investors are waiting to hear more about the
Trump administration's tax reform and reduction package later
Wednesday. His proposal is expected to include cutting the
corporate tax rate to 15% from 35%
(http://www.marketwatch.com/story/trumps-15-corporate-tax-rate-could-cost-the-government-2-trillion-2017-04-25).
Equity markets worldwide since November have been bolstered by
expectations for Trump-backed tax policies in the U.S., the world's
largest economy. But there have also been doubts about
implementation of his proposals after Republicans failed in a first
bid to repeal the Affordable Care Act, also known as Obamacare.
"The consensus sentiment is that any kind of tax reduction Trump
introduces will free up corporate capital for re-investment and
this should improve valuations even more, hence the fresh demand
for stocks," said Konstantinos Anthis, analyst at ADS Securities,
in a note.
"However, if Trump fails to at least provide the broad strokes
of his plan, or fails to explain how he plans to pay for these tax
deductions, the dollar runs the risk of pulling back again" and
pulling gold prices lower, said Anthis.
Read:Here's how much a Trump tax-plan letdown could whack the
stock market
(http://www.marketwatch.com/story/heres-how-much-a-trump-tax-plan-letdown-could-whack-the-stock-market-2017-04-26)
The euro bought $1.0867, down from $1.0928 late Tuesday in New
York.
Earnings: Shares of Standard Chartered PLC (STAN.LN) jumped 4%
after the bank said pretax first-quarter profit almost doubled
(http://www.marketwatch.com/story/standard-chartered-earnings-rise-as-bad-loans-ease-2017-04-26).
Daimler AG (DAI.XE) sharply raised its outlook for the year
(http://www.marketwatch.com/story/daimler-lifts-earnings-outlook-as-profit-doubles-2017-04-26)as
the maker of Mercedes-Benz luxury cars reported net profit doubled.
Shares ended 0.2% higher.
Read:What to watch in Deutsche Bank earnings
(http://www.marketwatch.com/story/what-to-watch-in-deutsche-bank-earnings-2017-04-26)
(http://www.marketwatch.com/story/what-to-watch-in-deutsche-bank-earnings-2017-04-26)Also
read:What to watch in AstraZeneca earnings
(http://www.marketwatch.com/story/what-to-watch-in-astrazeneca-earnings-2017-04-26)
Indexes: In Paris, the CAC 40 gained 0.2% to 5,287.88, ending at
its highest level since January 2008. The French benchmark is now
up 4.5% this week, as investors have welcomed the result
(http://www.marketwatch.com/story/french-stock-futures-soar-after-macron-election-win-eases-frexit-fears-2017-04-24)
of the first round of the country's presidential election held on
Sunday.
Read:French election relief lays ground for ECB tapering -- but
not yet
(http://www.marketwatch.com/story/french-election-relief-could-pave-way-for-ecb-tapering-but-not-yet-2017-04-25)
Germany's DAX 30 climbed 0.1% to 12,472.80.
The U.K.'s FTSE 100 added 0.2% to 7,288.72.
(END) Dow Jones Newswires
April 26, 2017 12:08 ET (16:08 GMT)
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