Stock markets dip as Trump’s tax plan disappoints investors – business live

All the day’s economic and financial news, including reaction to Donald Trump’s tax proposals and this afternoon’s European Central Bank meeting

As well as the tax reform plan, investors are also digesting the surprise news that Donald Trump no longer wants to abolish the NAFTA free trade agreement.

This huuuge u-turn broke last night, after talks with the leaders of Canada and Mexico:

Massive Trump U-turn: says he will not pull out of Nafta at this time. He’s railed against it his whole life pic.twitter.com/IPlYbpzKAD

Overall, this suggests that both communication and policy decision making are a shambles at the White House right now, with extreme and more moderate forces vying to get Trump’s attention.

Overall, this Nafta issue highlights that policy implementation risk is surging under the Trump administration, and could stoke volatility if it continues.

The dollar has also dipped this morning, taking the greenback close to its lowest level in five months.

That’s pushed sterling back over $1.29.

The lack of details contained on Trump’s single piece of paper was perceived as a publicity stunt for the President as he celebrates his first one hundred days in the Oval Office, and unfortunately, seemed more of a wish list than a serious starting point.

UK bank Lloyds is defying the selloff, with its shares jumping 4% at the open.

Related: Lloyds profits double to £1.3bn despite PPI and fraud payouts

Connor Campbell of SpreadEx sums up the problem with Donald Trump’s tax plan – Not Enough Detail!

Alongside cutting corporate tax rates to 15%, Treasury Secretary Steven Mnuchin and National Economic Council director Gary Cohn revealed that the USA’s 7 tax brackets would be reduced to 3, while the alternative minimum tax would be slashed and nearly all of the current tax deductions eliminated.

Yet when pressed for more information, specifically if these reforms would be revenue neutral, the pair came up short, producing some Trumped up rhetoric about how it would pay for itself through ‘growth, reduction of deductions and closing loopholes’ and that the administration had a ‘once in-a-generation opportunity to do something really big’.

Here’s the damage across Europe’s markets this morning:

In focus today will be fallout from Trump’s tax announcement, having disappointed by being merely a proposal framework and still facing the same Congressional hurdle (deficit hawks on both sides of the aisle) that he was unable to clear with Healthcare reform.

European stock markets have fallen at the start of trading as traders give their verdict on Trump’s tax policies.

In London, the FTSE 100 has shed 27 points or 0.4%, while France’s CAC 40 has lost 0.2%.

Investors focused on President Trump’s tax reforms were disappointed by the lack of any real detail.

Robin Bew of the Economist Intelligence Unit isn’t impressed by the lack of detail in the Trump tax plan.

Trump tax plan so thin as to be almost meaningless. Headline grabbing rate reductions with no detail on funding. Long way from being passed

The tax plan unveiled today is like turning in a book proposal to your editor on the day the manuscript is due.

White House unveils dramatic plan to overhaul tax code: plan has less than 200 words and contained just 7 numbers https://t.co/EWDPvEn5MQ

After all the razzmatazz, Donald Trump’s tax reform plan has left investors rather cold.

If you’re going to promise one of the biggest tax cuts ever, you need to present more than one side of A4 paper peppered with bullet points. So the broad brush policies presented last night haven’t really impressed the City.

Related: Trump unveils ‘most significant tax reforms since 1986’, but experts sceptical –as it happened

Related: Trump under fire for ‘huge tax cut for the rich’

Markets had been hoping for more in the way of specifics, in particular the percentage level of the one-off profits tax, which it is hoped will prompt technology companies to repatriate the billions of dollars in profits currently held overseas, as well as some indications on timings, and how the cuts would be funded.

These still appear to be some way off, and appear unlikely to go through this year, though we may get something on healthcare by the end of the month. In any case the effect on the US dollar is likely to be a negative one given that markets will have to wait a while longer for a repatriation boost.

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

After the market’s ‘hawkish’ interpretation of the March meeting we expect that Draghi will purposely look to strike a more dovish tone in his press conference along the lines of his recent speech to the annual ‘ECB and its Watchers’ conference earlier this month.

He argued that, despite an improving growth backdrop, the conditions under which the ECB could begin to consider tightening policy had yet to be met, meaning that that there was no cause to deviate from the current policy path and forward guidance, including what it implied about the sequencing of policy changes

UK companies posting results – Persimmon, Jardine Lloyd Thompson, Cobham, Agrekko, Astra Zeneca, Weir Group, Schroders, WPP, Katz Minerals

LLOYDS BANKING GROUP posts Q1 interim management statement today at 7.00am

US companies posting results – Ford, Raytheon, Zimmer, Bristol Myers Squib, Mead Johnson, CME, KKR, Microsoft, Amazon, Starbucks, AbbVie,

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