Trump Backs Down from NAFTA Threats; Oil Prices Fall on Oversupply Worries
Published April 27, 2017
The loonie recovered from yearly lows against the US dollar this morning; shocks from a possible US exit from NAFTA were quelled after US President Trump said he would not scrap the pact but renegotiate with Canada and Mexico instead
White House officials mentioned that President Trump told Canadian Prime Minister Justin Trudeau and Mexican President Enrique Pena Nieto that he would resist a speedy termination of NAFTA, in what was described as a “pleasant and productive” conversation
The market had a mixed reaction to President Trump’s tax plan reveal yesterday; investors were disappointed by the lack of specific details despite claims that the new cuts would greatly improve America’s GDP
The announcement by Treasury Secretary Steven Mnuchin and Chief Economic Adviser Gary Cohn largely confirmed the macro details that President Trump had earlier hinted at; the corporate tax rate is to be reduced to 15% and the tax code for individuals will be simplified
Oil prices dropped this morning to their weakest level in around a month, relating to fears that an ongoing rebound in US shale production could stem OPEC’s efforts to curb global oil supply
The European Central Bank left interest rates unchanged as expected; investors look to the upcoming press conference for any hints of dovishness from Central Bank President Mario Draghi
