Global Stocks: Yellen lifts dollar as markets await Trump tax plan

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Ellen Zentner, chief economist at Morgan Stanley, says her biggest takeaway from the Cleveland speech was Yellen's confidence that "a strong US labor market would ultimately drive inflation closer to the Fed's two percent goal over the next few years".

USA stock-market indices relinquished earlier gains to close little changed on Tuesday, 26 September 2017 with the Dow industrials extending a losing streak to a fourth session.

Japanese shares hit 1-1/2 week lows as many heavyweight stocks went ex-dividend, offsetting investor optimism over a declining yen following Yellen's comments.

The dollar index was up 0.04% to 93.07 as of 04:22 BST. "So we do see lower [prices] predicated exclusively due to the monetary tightening by the Fed in the U.S".

The former chairman of the Senate Banking Committee said Tuesday he doesn't expect President Trump to reappoint Federal Reserve Board Chairwoman Janet Yellen after her term ends in February.

The tax reform speech by U.S. president Donald Trump in Indianapolis later on Wednesday - of which he had promised "the largest tax cut in the history of our country" - will be closely watched by investors given its possible repercussions for the dollar. For her part Janet Yellen stuck with a modestly hawkish tone and, when she had finished speaking, the chances of an interest rate rise in December was still priced at well above 70%.

Trump's actions as president now under scrutiny in special counsel's investigation
The 2016 meeting was also attended by Trump's son-in-law Jared Kushner and his former campaign manager Paul Manafort . But it's his job to make sure all documents related to these requests are being found and sent to Mueller's team.

Nevertheless, she admitted there was uncertainty on various fronts, including the strength of the jobs market, what was implied by the current level of inflation expectations and even the fundamental forces behind inflation.

-The MSCI All-Country World index fell 0.3 percent to the lowest in over two weeks. USA prices had rallied on Monday, with the gains spurred in part by a threat from Turkey's president to cut off oil exports from a Kurdish region of Iraq.

U.S. Treasury prices retreated further on Wednesday, driving yields higher, after the White House unveiled further details of its plan to overhaul the tax code, reviving the so-called reflation trade that was underpinned by hopes that President Donald Trump's fiscal agenda would stoke inflation pressures.

New Zealand's benchmark S&P/NZX 50 index rose 26.60 points or 0.34 percent to 7.913.78, gaining for the fourth straight session as investors shrugged off potential uncertainty on the domestic front. The Nasdaq composite gained 9.57 points, or 0.2 percent, to 6,380.16. US crude stocks were reduced by 761,000 barrels last week, the American Petroleum Institute announced on Tuesday.

The aussie extended its losses for the third day reaching a six-week low of $0.7835 on the back of a stronger dollar and decreasing metal prices.

-The euro sank 0.5 percent to $1.1792, the weakest in five weeks.