Banks in Europe take off with good earnings
It’s everyone waiting for the big news on taxes! The dollar held its ground while we find Trump in China exactly one year since his election lamenting against unfair trade practices. But as a good guest he didn’t blame China but his predecessors for allowing the trade deficit to widen.
In Europe shares had a bit of a tough time taking off after a volatile Asian session. Basic material and energy shares fell back as industrial metals had some red sessions.
Financials went up though, as many Italian banks reported exceeding anticipations earnings reports. That might mean that the Italian bad debt problem hardly is as big as it’s being presented.
One particular stock market that’s been having a bad time is the Saudi Arabia one. The recent purge among royal family members isn’t met by markets with any grins.
More important events to watch out for this week are the earnings reports from Walt Disney Co., Adidas, Siemens. All of them are expected to exceed estimates with the accelerating EU economy.
Tax plan ready by Thanksgiving would be nothing less than a holiday miracle
Party’s over, boys! US Senate revealed that the corporate tax cut would be postponed till 2019. Stocks stumbled, dollar retreated and Treasuries rose.
The markets wanna see a tax cut this year, is what most analysts conclude. That’s what the whole selloff we see now is all about and what the post-election gains were owed to.
Policymakers also aim to pass a tax plan by Thanksgiving. At this moment though, that looks like a holiday miracle.
Among the worst hit today were tech shares. Flipping the tide, they were some of the best performers the past 2 weeks.
On the other side of the pond, European shares tumbled the most since August. Basic resources didn’t have a good time, beaten by low industrial-metal prices.