US Tax Bill Set to Pass – World Markets Climb

by | 18 Dec, 2017

All eyes on Capitol Hill this week as Republicans push for tax reforms

European and Asian stock markets moved higher as we entered a new week of trading today. The DAX leads in Europe up by over +1.50% thanks to strong performances for Siemens (+2.06%), Continental (+1.77%) and Volkswagen(+1.39%), while the NIFTY50 and TOPIX led the way across Asia. Indian markets moved up after Prime Minister Narendra Modi’s party was victorious in elections in his home state of Gujarat.

Tax Plan Update
There is fresh optimism in the markets this week that Republican tax reform plans will pass soon, given that Treasury Secretary Steven Mnuchin said amongst several TV interviews on Sunday he has “no doubt” the GOP tax bill will make it to President Trump’s desk this week.

Trump will be keen to deliver the tax package before the Christmas break, signalling the first major win of his legislative agenda.

Republican Senators Marco Rubio of Florida and Bob Corker of Tennessee have officially pledged their support for the tax overhaul, despite previous opposition. Those 2 votes are crucial and could be enough to secure a win by outnumbering Democrat votes.

Back in November, every single Democrat Senator voted against the first version of the tax bill when it came to the House of Representatives, with many saying the reforms would add too much to the national debt, raise inequality and provide too many advantages to the rich. Mnuchin, Trump and his top Economic Advisor Gary Cohn fervently deny those criticisms and have stated that the bill will cut taxes for the middle class and reduce the tax burden on American businesses, helping them to grow and expand, thus producing further growth for the economy. They believe this boost will eventually lead to higher wages for regular workers.

Whether this system of trickle-down economics will work is yet to be seen.

Futures for the Dow Jones, S&P500 and Nasdaq indices all climbed today ahead of the opening of US markets, rising by 105 points, 7.5 and 27.75 respectively.

Corporate Results to Watch
Luxury cruise ship operator Carnival Corporation and real estate financial services firm Lennar Corp both release Q4 earnings today.

World markets move upwards this Monday. Blue: TOPIX, Red: NIFTY50, Yellow: DAX, Green: FTSE100, Grey: Shanghai SSE Composite

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ALL RIGHTS RESERVED © INVSTR LTD. 2017

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

 

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