Earnings season if full swing
You can’t win them all. European shares gave up ground, forced by the surrender of banking stocks as many of them disappointed. CrediAgricole was the main culprit.
Still, construction shares made headway, lead by HeidelbergCement as it beat estimates. The euro pummeled forward along with government bonds.
Sterling fell with all the tensions in the UK government surrounding Priti Patel. Oil fell for a second day cause of signs US stockpiles fell by less than expected.
Investor focus has turned to Trump and his Asian tour. He used his stop at South Korea to send a rallying cry at world leaders against North Korea.
Back in the US however the tax reform has stalled a bit. Apparently Senate Republicans wanna hold the tax cuts for an entire more year. The hopes for lower corporate tax have brought the US stock market unseen heights.
While NASDAQ jitters forward banks are worried about the tax debacle
Boy, that was close! A sudden spurt of tech shares sprints managed to lift US indices to gains. That many not have happened if it wasn’t for banks, who are expected to gain the most from Trump’s tax plan.
It’s all about concerns that the tax bill faces an uphill battle in Congress. Democrats took the governor’s position in New Jersey and Virginia. They also picked up state legislative seats in almost every state.
This serves as a harsh reminder that Reps don’t have an eternity to get their bills passed. The dollar retreated slightly.
Still, what we had as gains weren’t about that, but are owed to strong earnings, low interest rates and synchronised world growth, is what many investors are convinced of.