Focus remains on Trump’s tax policy
The Trump train made a stop at Jerome-Powell-for-next-Fed-chairman station. What does it all mean? Well, traders were elaborating on that this morning session. The dollar gave up some ground. Guess it got frightened a bit.
In Europe Stocks 600 barely budged, but the session’s far from over. Real estate and telecom stocks are leading the parfade among the gainers there though.
On the other end of the world in Asia, the session is near it’s close. Truly spectacular rally there the past few days – it drove the share prices to a 10-year high. But it showed signs of tiring today.
Oil took some of the steam away by falling below 54 bucks. In the US stockpiles kept falling on the latest data, but production expanded.
Trump’s tax offensive keeps being a red dot on investor’s radars. Rumor has it he’s gonna lower corporate tax to 20%, making it own of the smallest among the rich world.
Meanwhile, the bitcoin beast keeps being unreal! The e-currency just passed 7 grand a piece, which is 14th consecutive day of records. How long’s gonna last? Is there any fundament to it? Only time will tell.
Homebuilders take a punch on planned mortgage interest deduction
It can’t last forever. Most US stocks retreated along with the dollar. Investors got scared by the details of the Republican tax plan.
US benchmark indices were mixed as investors evaluated the details who wins and loses. Small caps advanced, cause they liked the low corporate taxes, but the housing sector took a beat after news came out how mortgage deductions will be treated.
Rate-sensitive shares like utilities advanced while Facebook fell 2% because of its large scale cyber security plans.
Whatever it happens with the tax plan this is the House version. It needs to be approved by the Senate and from then on we’ll have a clearer picture.
So far the tax plan includes a 20% corporate tax down from the current 35% and only 12% tax on companies’ offshore earnings.