Donald Trump’s tax plan likely to buoy JSE on Tuesday
Monday’s rally — during which Paris’s CAC 40 rose more than 4% and Frankfurt’s DAX 30 gained 3.4% — looked set to continue on Tuesday.
All three of the US’s main stock market indices rose by more than 1% on Monday, and are likely to be driven higher on Tuesday by reports that US President Donald Trump intends to propose cutting the corporate tax rate for US companies from 35% to 15%.
Trump will officially announce his tax plans on Wednesday.
"But any changes would have to be backed by Congress, and passing a sweeping tax cut plan that widens the deficit would be virtually impossible on Capitol Hill without bipartisan support, in the view of key players in both parties," The Washington Post said on Monday.
The global stock market celebration of a pro-EU party making it through to the second round of the French election buoyed the JSE’s all share index, which closed 1.4% higher on Monday.
Big winners included the JSE-listed owner of French furniture chain Conforama, Steinhoff International, whose share price jumped 5.3% to R67.39.
The Euro Stoxx 50 rose 4% on Monday, which translated into a 4.5% gain to R51.06 for Deutsche Bank’s dbx-eu exchange-traded fund that tracks it.
The JSE’s gold miners, however, looked likely to suffer again on Tuesday, with the metal’s price continuing to slide while the rand held steady at about R13/$ at 7am.
The gold index fell 5.4% on Monday, led by Gold Fields falling 6.54% to R47.46, followed by Sibanye losing 6% to R27.82 and AngloGold Ashanti down 5% to R157.56.
Wholesaler Nu-World said in a trading statement on March 29 that it expected to report on Tuesday that headline earnings per share (HEPS) for the six months to end-February grew between 60% and 75%.