DT Feb 10 afternoon

Thanks Oscar and morning crew.


Half-time round-up:

The ASX 2oo cracked 5700 for the first time since late January after the promise of corporate tax cuts drove US stocks to record levels overnight.

At 1pm EST the benchmark index was 43 points or 0.8% higher at 5708. Leading the charge were IT stocks +1.5%, energy +1.4% and consumer discretionary +1.2%. The defensive gold sector sagged 3.4%.

The S&P 500 in the US gained 0.58% overnight, setting a new all-time high as President Donald Trump promised to unveil a "phenomenal" tax plan within "two to three weeks".

"The market loves the idea of tax reform," IG's Chris Weston told Fairfax. "It has corporate tax cuts in its sights and if Trump can push that along, with a more simplified personal tax regime the US and global equities will find buyers. Of course, we are still waiting for further colour on border tax too, and that is something economists really want to see to make the proposed cuts to corporate tax efficient."

The buoyant mood spread to Asia, where China's Shanghai Composite rallied 0.13%, Hong Kong's Hang Seng 0.53% and Japan's Nikkei 2.27%. Dow futures strengthened 20 points or 0.1%.

Crude oil futures rose 11 cents or 0.21% this morning to US$53.11 a barrel. Gold futures fell another $11.60 or 0.94% to US$1,225.20 an ounce. The dollar was buying 76.37 US cents.


The market's still willing to buy whatever Trump's selling. Of course, salesmanship is his strength. Following through? Maybe not so much. His problem is that outcomes are going to be more closely monitored while he's in the White House. Be interesting to see how long his word is good enough for a market rally. Using the word "phenomenal" sets high expectations for the tax package. Buy the sales pitch, sell the news? Trading: mixed morning. Pips from BMT twice and a solid win in BMN. Reluctantly took the hit on MBE. No volume, lower closes each day, looks like it's being propped while someone patiently offloads. Hope for holders I'm wrong - often am.