Obama unveils US450bn Jobs aid

President Obama announced a US450 billion package of tax cuts yesterday that is hoped will assist the unemployment situation, promote spending and aid growth. He calls it " The American Jobs Act". However getting this package into law maybe another story.

Asian markets ahead of the G7 meeting this weekend, have shrugged off Obama's plans as "hopes and dreams" with a lot of politics to go before it happens and most equity markets there finish lower.

Given the problems he had recently trying to raise the US debt ceiling, this package is a long way away from being rubber stamped and markets are very much in "wait and see" mode, trying to separate a serious attempt at economical stability in the US, from a re-election strategy

European markets open lower this morning following good gains this week, so possibly professional investors are tucking away some profits and are unimpressed by Obama's speech.