Both US Stocks and the dollar are weaker on Thursday as fears grow that the Senate Republican tax plan may delay corporate rate cuts by a year, and if this becomes fact then we could be in for a decent reversal of the recent trend that has underpinned both in recent weeks. The selloff in stocks saw the DSJI fall around 250 points at one stage although by the end of the session about half those losses had been recovered. The US$ is under pressure too, with some safe haven demand ensuring that the Yen and the Chf are stronger today, as is Gold, which is up by around 0.25%. The Euro is higher, but remains below the critical head/shoulder neckline level, while Sterling is in the doldrums as UK politics and Brexit combine to ensure that any upside momentum is limited. In the oil market, WTI is pretty much unchanged after a choppy sideways trade.
Friday could be a relatively quiet session given the Veterans Day holiday (Saturday) and very little data to come from the US, although markets will be open and any headlines on the tax-bill are likely to have an impact. Before then though , Asia will kick off with the NZ Electronic Card Retail Sales and the Australian Statement on Monetary Policy which may provide a directional move for the Aud$. After that it becomes a rather thin calendar, with the China New Loans and the UK Manufacturing/Industrial Production figures being the only real points of interest. The Provisional Michigan Consumer Sentiment Index for November will be the sole piece of US data although interest may be limited. (Expect 100.7). Have a good weekend.
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