Market overview: US tax cuts on the cards? - ANZ

Analysts at ANZ offered a snapshot of the markets.

Key Quotes:

"Markets reacted as you would have expected them to in the aftermath of last week’s decision by Donald Trump to pull proposed reforms and repeal of Obamacare. The dollar weakened, fixed income rallied (yields fell) and stocks declined. However, the moves were relatively muted and US stocks retraced much of their losses by the time of writing whilst Treasury yields were off their lows and the dollar stabilized."

"Whilst a blow for Donald Trump for now, repeal of Obamacare will resurface in time whilst the focus on securing middle class tax cuts and the rollback of other regulation is likely to intensify. That expectation helped to stabilize markets. At the time of writing, the S&P 500 was off 0.1%, the yield on the US 10-yr note was at 2.37% (-4bps) and the DXY was off 0.5% from Friday’s close. European bourses underperformed with the DAX and FTSE 100 down 0.6%. The CAC 40 was off 0.1%. Oil remained weak as supply concerns continued to weigh on price."