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GLOBAL MARKETS-Stocks little changed after Trump tax plan; euro weakens on Draghi
April 27, 2017 / 6:04 PM / in 8 months

GLOBAL MARKETS-Stocks little changed after Trump tax plan; euro weakens on Draghi

* European shares snap six-day winning streak

* Oil slumps as Libya restarts oilfields

* Wall St edges up on earnings (Updates with close of European markets)

By Chuck Mikolajczak

NEW YORK, April 27 (Reuters) - A gauge of world stock markets was little changed on Thursday as a three-day rally stalled in the wake of a largely expected U.S. tax cut plan, while the euro weakened after comments from European Central Bank President Mario Draghi.

On Wall Street, stocks edged higher as investors focused on a stream of solid earnings reports after a lukewarm reception for U.S. President Donald Trump’s tax plan unveiled on Wednesday, some of the details of which were largely expected by investors.

Corporate earnings continue to show strong results for the quarter. Comcast, up 2.8 percent, was the top boost to the benchmark S&P 500 index after reporting results.

“The market is focused more on growth and earnings now than what is coming out of the administration,” said Ryan Caldwell, chief investment officer at Chiron Investment Management.

“It is good to see they are looking at taxes, and it’s good to know they are aggressive, but the implementation looks more like an end-of-the-year event.”

Microsoft, and Google parent Alphabet are scheduled to report results after the closing bell on Wall Street. First-quarter earnings are expected to show growth of 12.4 percent, the best since 2011, according to Thomson Reuters data.

U.S. economic data showed new orders for U.S.-made capital goods rose less than expected in March, but a second straight monthly increase in shipments suggested business investment accelerated in the first quarter.

The Dow Jones Industrial Average rose 13.02 points, or 0.06 percent, to 20,988.11, the S&P 500 gained 2.06 points, or 0.09 percent, to 2,389.51 and the Nasdaq Composite added 21.19 points, or 0.35 percent, to 6,046.41.

Europe’s main bourses closed lower after falling as much as 0.5 percent as traders pulled back after a six-session winning streak on relief at the outcome of the first round of France’s presidential election and encouraging earnings.

The pan-European FTSEurofirst 300 index lost 0.23 percent and MSCI’s gauge of stocks across the globe shed 0.06 percent to edge down from a record.

As widely expected, the ECB made no changes to its record- low interest rates or stimulus program. But euro zone government bond yields and the euro fell after Draghi said policymakers did not discuss removing the bank’s easing bias on monetary policy at this month’s meeting.

The benchmark 10-year Bund yield was last down almost 5 basis points at 0.303 percent. The euro was down 0.24 percent to $1.0877 against the dollar.

After weakening against the greenback on Wednesday, the Canadian dollar and Mexican peso went in opposite directions after the U.S. said it would not scrap the North American Free Trade Agreement (NAFTA).

The Mexican peso strengthened 0.59 percent versus the U.S. dollar at 19.07, while the Canadian dollar weakened 0.14 percent versus the greenback at 1.36 per dollar.

Oil prices renewed their slump after news that two key oilfields in Libya had restarted, pumping crude for export into an already swollen market. Brent crude is on track for its seventh decline in nine sessions.

U.S. crude fell 1.37 percent to $48.94 per barrel and Brent was last at $51.71, down 1.34 percent on the day.

Additional reporting by Yashaswini Swamynathan; Editing by Dan Grebler

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