Republican turmoil raises uncertainty over the anticipated tax cuts
US stocks fell the most in nearly 2 months, while the greenback slid after a mixed batch of corporate earnings and turmoil in Washington put Trump’s tax overhaul on the line.
Among the worst hit were Chipotle and Advanced Micro Devices who were leading in the retreat. Chipottle dropped 6% as it’s profit missed estimates, owing to Hurricane Harvey and the cyberbreach in April. The company’s stock fell 15% since the beginning of the year.
The market slump comes a day after GOP senators Jeff Flake and Bob Corker publicly criticised President Trump just when he’s trying to push for big changes to the US tax code.
In the meantime the ECB is expected to announce a cut it’s bond buying program tomorrow. EUR/USD on the watch.
Here’s what caught our eye among equity:
S&P 500 Index fell 0.47% in New York, the Dow Jones declined 0.48% and the Nasdaq dropped 0.52%.
Stoxx Europe 600 dropped 0.57%.
FTSE 100 decreased 1.1%.
DAX dropped 0.46%.
We had a rowdy session among developing currencies:
The dollar slipped 0.2%.
The euro added 0.3% to $1.1801, passing the psychological $1.18
The pound climbed 0.9% to $1.3249.
The rand slumped 2.2% to 14.0609 per dollar – the lowest in about 10 months.
The Mexican peso added a full percent against the greenback; the Canadian dollar by one percent.
A fairly mildly intensive commodity trade:
Gold added 0.1% to $1,277.61 an ounce.
WTI crude slipped 0.5% to $52.21 a barrel.