{"id":116524,"date":"2017-11-15T06:59:56","date_gmt":"2017-11-15T11:59:56","guid":{"rendered":"http:\/\/countingpips.com\/?p=116524"},"modified":"2018-06-01T15:49:13","modified_gmt":"2018-06-01T15:49:13","slug":"tax-reform-uncertainty-weighs-on-us-stocks","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/11\/tax-reform-uncertainty-weighs-on-us-stocks\/","title":{"rendered":"Tax reform uncertainty weighs on US stocks"},"content":{"rendered":"
November 15, 2017<\/div>
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By IFCMarkets<\/a><\/p>\n

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Stocks pullback continues<\/h2>\n<\/div>\n<\/div>\n

US major stock indices<\/b>\u00a0inched lower on Tuesday as tax cuts delay concerns undermined market sentiment. The dollar weakened on euro rally: 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 0.7% to 93.81. The\u00a0S&P 500\u00a0<\/em>lost 0.2% to 278.87 led by energy and materials stocks.\u00a0Dow Jones\u00a0<\/em>industrial average rose slipped 0.1% to 23409. The\u00a0Nasdaq\u00a0<\/a>composite index fell 0.3% to 6737.87.<\/p>\n

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Tax reform uncertainty weighed on investor confidence as earnings season draws to end. Senate Republicans on Tuesday linked repealing a key component of Obamacare to their tax bill. This raises risks for the Republicans\u2019 tax reform. Treasury Secretary Steven Mnuchin said the Trump administration wouldn\u2019t support tax legislation with corporate tax above the proposed 20% rate as part of any future compromise between the House and the Senate. Positive data were shrugged off by markets: the producer price index for October remained steady at 0.4% over month when a decline to 0.1% increase was expected. And the NFIB small business index rose to 103.8 in October, up from 103 in September. Today at 14:30 CET inflation report will be released, the outlook is bearish for the dollar.<\/p>\n<\/div>\n<\/div>\n

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Surprise acceleration in German growth boosts euro<\/h2>\n<\/div>\n<\/div>\n

European stocks\u00a0<\/b>fell sixth session in a row on Tuesday on stronger euro and weak Chinese data. Both the\u00a0euro\u00a0<\/em>andBritish Pound\u00a0<\/em>rose against the dollar. The Stoxx Europe 600 fell 0.6% on above 1% jump in euro. German\u00a0DAX 30\u00a0<\/a>lost 0.3% closing at 13033.48. France\u2019s\u00a0CAC 40<\/em>\u00a0closed 0.5% lower and UK\u2019s\u00a0FTSE 100\u00a0<\/em>slipped 0.1% to 7414.42. Markets opened 0.1%-0.2% higher today.<\/p>\n

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Euro rallied after Germany\u2019s statistics agency reported German economy grew at above expected 2.8% over year rate in the third quarter when a 2.3% growth was expected. Italy\u2019s growth of 1.7% was the largest since 2011 and also above expectations. Mining shares fell after data showed China\u2019s industrial output slowed in October: Chinese companies are major buyers of industrial metals. Pound rose despite a 3% rise in UK inflation was 0.1 percentage point below expectations.<\/p>\n

\"DE30\"<\/p>\n<\/div>\n<\/div>\n

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Nikkei leads Asian indices lower<\/h2>\n<\/div>\n<\/div>\n

Asian stock indices<\/b>\u00a0are down today tracking Wall Street losses overnight.\u00a0Nikkei\u00a0<\/em>lost 1.6% to 22028.32 as yen strengthening accelerated against the dollar. Market reaction was muted to the report Japan\u2019s GDP rose 0.3% over quarter during the July-September period, the seventh straight quarter. Chinese stocks are down: both the\u00a0Shanghai Composite Index\u00a0<\/em>and Hong Kong\u2019s\u00a0Hang Seng Index\u00a0<\/em>are 0.7% lower. Australia\u2019s All Ordinaries Index lost 0.6% despite resumed weakness in Australian dollar against the greenback as the 0.5% growth in wages in Q3 was lower than expected.<\/p>\n

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Oil lower on global demand downgrade<\/h2>\n<\/div>\n<\/div>\n

Oil futures prices\u00a0<\/b>are steady today after big drop Tuesday. Prices fell yesterday after the International Energy Agency (IEA) cut its global crude oil demand forecasts and warned about rising US shale oil output. The IEA on Tuesday cut its oil demand growth forecast by 100 thousand barrels per day (bpd) for this year and next, to an estimated 1.5 million bpd in 2017. January Brent fell 1.5% to $62.21 a barrel on Tuesday. The American Petroleum Institute industry group said late Tuesday US crude stocks rose by 6.5 million barrels last week. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.<\/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 Stocks pullback continues US major stock indices\u00a0inched lower on Tuesday as tax cuts delay concerns undermined market sentiment. The dollar weakened on euro rally: the\u00a0live dollar index\u00a0data show the ICE US Dollar index, a measure of the dollar\u2019s strength against a basket of six rival currencies, fell 0.7% to 93.81. The\u00a0S&P 500\u00a0lost 0.2% […]<\/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-116524","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/116524","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=116524"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/116524\/revisions"}],"predecessor-version":[{"id":116532,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/116524\/revisions\/116532"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=116524"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=116524"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=116524"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}