The tax debacle’s hitting small companies more than large ones
Not a good day for Trump’s tax plan. Reports showed that the tax cuts will be phased in only gradually in the course of several years. As a result the Russell 2000 Index sand the most in more than two months. Ouch!
Trump’s proposed tax cuts would’ve helped small business a lot more than large corporations. So things got really hyped up over the past few months about them, which gave ’em inflated valuations.
Donald Trump’s also expected to pick his new Federal Reserve chairman by Friday. So y’all gotta keep an eye out on that EUR/USD as well on bonds.
At the same time Bank of England and Bank of Japan are set to meet this week. You know it here – yen and pound on stop-losses.
In Europe shares went up. That was odd, considering the Spanish government took complete control of Catalonia. Watch the euro on this one.
We also got Facebook announcing its earnings on Wednesday and Apple following soon after. By the looks of it the shares will rise, as the company’s expected to show a stronger than anticipated. There ain’t no stoppin’ this iTrain!
Euro-area’s price growth is below estimates
Europe’s alive n’ kickin! Data showed inflation had slowed down, while the economy remains strong. Mario Draghi sure must be happy as calls to shorten the QE program will most likely keep piling up. Watch out for that strengthening euro!
Price growth cooled to 1.4% from 1.5% in September. At the same time GDP hit 2.5% growth in the 3rd quarter, making it the highest since 2011. Money’s flowin’ and stuff remain cheap – take that largesse, Europe!
Oil and gas stocks stood out the most today, cause black gold remains at a 6 month high. US stock index futures are also up. Spanish equities keep pushing higher, cause Madrid won the power struggle with the Catalan separatists.
Meanwhile investors wanna figure out who’s gonna be the next Fed chair and have a leg up on what’s ’bout to happen to the dollar. The NYT reported that it’s gonna be Jerome Powell, which is exactly what the market is thinking as well.
Still, that morning batch of Chinese manufacture data didn’t bode well with the rest of Asia. Japanese stocks close slightly in the dole. Could’ve helped that Kuroda left their interest rates still.