Dollar Rises After Trump Talks About Revealing Tax Plan

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All three major USA stock indexes closed at record highs for the second day in a row as President Donald Trump promises tax reform plan is coming, oil prices rallied and energy and material shares gained.

The Dow Jones Industrial Average was up 0.72 per cent at 20,198.17, the S&P 500 had gained 0.68 per cent at 2,310.31 and the Nasdaq Composite had 0.69 per cent at 5,720.03 at 3.05pm Friday EST (0705 Friday AEDT).

White House spokesman Sean Spicer later told reporters that Trump would unveil a comprehensive tax plan including tax cuts for individuals as well as businesses.

"The dollar also appeared to get a bit of a Trump-boost this afternoon, taking 0.2 per cemt off the pound, euro and yen, though its gains were capped somewhat by the sharper than expected fall in U.S. consumer confidence".

"It's been a broad-based dollar rally, driven by the headlines that Trump plans to announce something phenomenal on taxes in the next few weeks, in his words", said Kathy Lien, managing director of BK Asset Management.

The benchmark S&P 500 has rallied 7.9 per cent since Trump's November 8 election amid expectations he will usher in lower corporate taxes, but also reduce regulations and increase infrastructure spending.

Oil prices ticked higher, with West Texas Intermediate up 1.54% at $53.83 a barrel and Brent crude up 1.52% at $56.49.

The dollar had gained more than 5 percent against a basket of major currencies in the six weeks after Trump's election but has given back some of those gains as he has focused more on trade and immigration than fiscal stimulus.

'With just a few grandiose words, president Trump was able to reinvigorate the struggling "Trump trade", driving major USA equities to record highs and boosting the buck, ' said Matthew Weller, senior market analyst at Faraday Research. Export prices rose 0.1 percent last month, in line with estimates.

European shares ended at their highest level in two weeks on Thursday, with some major companies such as France's second-biggest listed bank Societe Generale and oil major Total advancing after their results.

"We're going to ... lower the overall tax burden on American businesses big-league".

The greenback was 0.26% stronger against the yen to 113.54, was up 0.35% against the pound to 0.8031 and rose 0.3% versus the euro to 0.9413.

Canada's main stock index also rose on Thursday to its highest in almost two weeks, led by a more than 2 percent gain for energy shares as oil prices rose, while lower prices for base and precious metals weighed on the materials group.

The TSX climbed 63 points on Thursday, led higher by energy stocks. 10 yield rose to trade at 2.427 percent, while the short-term two-yearyield hovered around 1.2 percent.

Gold slipped on Thursday from a three-month high in the previous session after robust USA economic data pointed to a stronger economy, increasing the likelihood that the Federal Reserve will raise US interest rates.

Europe's broad FTSEurofirst 300 index closed up 0.15 percent at 1,448.70.