The US$ continues to trade mixed. While stocks are a little lower as traders book profits ahead of the tax bill vote which will take place later in the coming session. Stocks are treading water ahead of the vote as are the metals and oil.
The House of Reps have just voted on and passed the bill and we now wait on the Senate, which is expected ratify it. It could all be rather hectic after the event although the result does seem to be fully written in. Also in focus today, the German IFO business climate dropped slightly to 117.2 in December, down from 117.5, below expectation of 117.6. The Current assessment gauge rose to 125.4, up from 124.5 and beat expectation of 124.7, while the expectations gauge dropped to 109.5, down from 111.0, missing consensus of 110.8. Released from US, housing starts rose 3.3% mom to 1.297m annualized rate in November. Building permits also rose 1.4% mm to 1.298m annualized rate. Both came in above market expectation.
Wednesday will be all about the US tax bill, and aside from that there is little on the calendar to provide direction. The Kiwi may see some action shortly with the release of the Q3 Current Account, November Trade Balance, and Visitor Arrivals. It will then be rather empty until the German PPI and the EU Current Account (Oct), a speech from BOE Governor, Mark Carney and the US Existing Home Sales. All eyes though will be on the upcoming tax bill vote.
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|OIL (WTI): 57.52|