{"id":115711,"date":"2017-10-31T07:25:09","date_gmt":"2017-10-31T11:25:09","guid":{"rendered":"http:\/\/countingpips.com\/?p=115711"},"modified":"2018-06-01T15:53:34","modified_gmt":"2018-06-01T15:53:34","slug":"us-stocks-pull-back-on-tax-cut-phase-in-talk","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/10\/us-stocks-pull-back-on-tax-cut-phase-in-talk\/","title":{"rendered":"US stocks pull back on tax cut phase-in talk"},"content":{"rendered":"
October 31, 2017<\/div>
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By IFCMarkets<\/a><\/p>\n

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Federal Reserve two-day policy meeting starts<\/h2>\n<\/div>\n<\/div>\n

US stocks<\/b>\u00a0retreated on Monday after a report that the House of Representatives is considering phasing in a cut to corporate taxes rather than enacting them immediately. The dollar pulled back after hefty gains last week: the\u00a0live dollar index<\/a>\u00a0data show the ICE US Dollar index, a measure of the dollar\u2019s strength against a basket of six rival currencies, fell 0.4% to 94.527.\u00a0S&P 500\u00a0<\/em>closed 0.3% lower settling at 2572.83 led by health care shares. The\u00a0Dow Jones\u00a0<\/a>industrial average lost 0.4% to 23348.74. The\u00a0Nasdaq\u00a0<\/em>composite index lost 2.3 points to 6698.96.<\/p>\n

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Treasury yields retreated after reports President Trump is leaning toward Federal Reserve Governor Jerome Powell as the next head of the central bank. Powell is perceived a dovish nominee compared to Stanford economist John Taylor who is expected to favor more aggressive interest rate increases. Trump is expected to announce his decision on Thursday. A Bloomberg report that the House is discussing a \u201cgradual phase-in for the corporate tax-rate cut that President Donald Trump and Republican leaders want \u2014 a schedule that would have the rate reach 20 percent in 2022\u201d undermined investors risk appetite. White House said President Trump had not changed his principles on tax overhaul and his plan didn\u2019t include a phase in. In economic news personal consumption expenditure index, the Fed\u2019s preferred inflation gauge, rose 0.4% as consumer spending jumped 1% in September, the biggest gain since 2009. Today Federal Reserve two day policy meeting starts.<\/p>\n<\/div>\n<\/div>\n

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European stocks edge higher<\/h2>\n<\/div>\n<\/div>\n

European stocks\u00a0<\/b>ended higher on Monday after the central government in Madrid dissolved Catalonia\u2019s government and decreed direct rule over the region. The\u00a0euro\u00a0<\/em>and\u00a0British Pound\u00a0<\/em>retraced higher against the dollar. The Stoxx Europe 600 index ended 0.1% higher. The\u00a0DAX 30\u00a0<\/em>added 0.1% to 13229.57. France\u2019s\u00a0CAC 40\u00a0<\/em>ended marginally lower and UK\u2019sFTSE 100\u00a0<\/a>lost 0.2% to 7487.81. Indices opened mixed today.<\/p>\n

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Spanish stocks recovered as Prime Minister Mariano Rajoy set new legislative elections in Catalonia for December 21. Economic data were mixed: Spain\u2019s Q3 GDP rose 0.8% over quarter, in line with expectations, and Germany\u2019s retail sales for September beat expectations but consumer price inflation for October came in lower than expected.<\/p>\n<\/div>\n<\/div>\n

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Bank of Japan keeps monetary policy steady<\/h2>\n<\/div>\n<\/div>\n

Asian stock indices<\/b>\u00a0are mostly lower today.\u00a0Nikkei\u00a0<\/em>closed 0.04% lower at 22002.50 as the Bank of Japan kept monetary policy steady and yen was little changed against the dollar. The central bank maintained its inflation forecasts pointing to signs of growing strength in the economy that policymakers hope will accelerate inflation towards its 2% percent target. Chinese stocks are higher despite a report China’s factory activity expansion slowed: the official manufacturing purchasing managers’ index fell to 51.6 in October from 52.4 in September. The\u00a0Shanghai Composite Index\u00a0<\/em>is 0.1% higher while Hong Kong\u2019s\u00a0Hang Seng\u00a0<\/em>Index is down 0.1%. Australia\u2019s All Ordinaries Index is down 0.2% while Australian dollar is flat against the greenback.<\/p>\n

\"AU200\"<\/p>\n

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Oil edges lower<\/h2>\n<\/div>\n<\/div>\n

Oil futures prices\u00a0<\/b>are inching lower today as traders took profits with recent gains raising the likelihood of increased US shale oil output boosted by higher prices. Prices rose Monday on continued optimism about global market rebalancing following talks of possible extension of OPEC output cut deal beyond March 2018. December Brent crude rose 0.8% settling at $60.90 a barrel on Monday.<\/p>\n

Market Analysis provided by IFCMarkets<\/a><\/p>

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Note:
\nThis overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or \u0430 recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.<\/p>\n","protected":false},"excerpt":{"rendered":"

By IFCMarkets Federal Reserve two-day policy meeting starts US stocks\u00a0retreated on Monday after a report that the House of Representatives is considering phasing in a cut to corporate taxes rather than enacting them immediately. The dollar pulled back after hefty gains last week: the\u00a0live dollar index\u00a0data show the ICE US Dollar index, a measure of […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-115711","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/115711","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=115711"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/115711\/revisions"}],"predecessor-version":[{"id":115720,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/115711\/revisions\/115720"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=115711"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=115711"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=115711"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}