Trump focuses on tax reform, infrastructure in address to Congress

NEW YORK, U.S. - Among the many subjects President Donald Trump referred to in his address to the Joint Session of Congress on Tuesday night was the rally witnessed by the stock market since his election in November last year.

"The stock market has gained almost $3 trillion dollars in value since the election on November 8th, a record," the president remarked. 

He also mentioned the reasons behind what has been dubbed the "Trump rally" - tax reform, infrastructure spending and regulatory rollbacks - though he did not give new or specific details.

"To accomplish our goals at home and abroad, we must restart the engine of the American economy - making it easier for companies to do business in the United States, and much harder for companies to leave," he noted.

The president also brought up tax reform, which has been key to the rally on Wall Street.

"My economic team is developing historic tax reform that will reduce the tax rate on our companies so they can compete and thrive anywhere and with anyone. At the same time, we will provide massive tax relief for the middle class," he said. 

"We must create a level playing field for American companies and workers."

The president reiterated his pledge to invest $1 trillion in infrastructure, which he said he will request from Congress. 

"This effort will be guided by two core principles: buy American, and hire American," he remarked.

Although Trump's address, like always, lacked specific details on how he intended to go about achieving his objectives, U.S. stock futures were ahead late on Tuesday, indicating a higher open on Wednesday.

"From an investor's perspective there was no new information, no surprises good or bad," said Steve Massocca, senior vice president at Wedbush Securities in San Francisco. 

"But he burnished his image, so there's a positive there. He's a pro-business president, so that's a good thing."

The gains on Tuesday reversed the losses witnessed on Monday when stocks ended down and the Dow snapped a 12-day streak of record closes.

On Tuesday, the Dow Jones Industrial Average fell 25 points to close at 20,812.24. 

The S&P 500 fell 6 points on Tuesday and the Nasdaq dropped 36 points.

On Wednesday, the dollar and U.S. Treasury Yields moved up as investors anticipated another interest rate hike this month.

The dollar index, which measures the greenback against a basket of other major currencies, rose 0.7 percent to its highest levels in seven week.

"After dominating the markets since November, President Trump could now fade into the background as the focus shifts to the Fed and the prospect of rate increases," said Kathleen Brooks, Research Director at City Index in London.

Meanwhile, stocks in Taiwan fell on Wednesday on the back of Trump's speech. 

The main Taiex index fell 0.6 per cent to 9,691.12 points as of 0254 GMT.

Japan stocks, however, saw their most significant gains in two weeks. 

The Topix index rose 1.2 percent to 1,553.09 at the afternoon close, even as the yen dropped for a third day.

European stock markets expected a positive start, with expectations that Britain's FTSE 100 and Germany's DAX would open 0.2 percent higher, and France's CAC 40 would start the day up 0.3 percent.