{"id":116569,"date":"2017-11-16T07:03:36","date_gmt":"2017-11-16T12:03:36","guid":{"rendered":"http:\/\/countingpips.com\/?p=116569"},"modified":"2018-06-01T15:49:12","modified_gmt":"2018-06-01T15:49:12","slug":"tax-reform-worries-drag-us-stocks-lower","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/11\/tax-reform-worries-drag-us-stocks-lower\/","title":{"rendered":"Tax reform worries drag US stocks lower"},"content":{"rendered":"
November 16, 2017<\/div>
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By IFCMarkets<\/a><\/p>\n

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Energy shares lead SP 500 retreat<\/h2>\n<\/div>\n<\/div>\n

US major stock indices<\/b>\u00a0pullback accelerated on Wednesday as concerns about tax cuts reform undermined investors risk appetite. The dollar strengthened : 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, rose 0.1% to 93.91. The\u00a0S&P 500<\/a>\u00a0fell 0.6% to 2564.62 led by energy shares. Nine out of 11 main sectors ended in the red. The\u00a0Dow Jones\u00a0<\/em>industrial average lost 0.6% to 23217.28.\u00a0Nasdaq\u00a0<\/em>composite declined 0.5% to 6706.21.<\/p>\n

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On Tuesday Senate linked the repeal of Obamacare individual mandate to its tax bill which made it more difficult to gain sufficient votes for passing. Concerns grew as Republican senator Ron Johnson said he wouldn\u2019t vote for the tax package as it benefits big corporations more than smaller companies. The report retail sales rose 0.2% in October while no change was expected as inflation slowed to 2% in line with expectations raised the likelihood the Fed will raise rates at its December 12-13 meeting.<\/p>\n<\/div>\n<\/div>\n

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European stocks extend losses<\/h2>\n<\/div>\n<\/div>\n

European stocks\u00a0<\/b>continued retreating on Wednesday led by mining shares. The\u00a0euro\u00a0<\/em>ended lower against the dollar while the\u00a0British Pound\u00a0<\/em>added to gains. The Stoxx Europe 600 closed lower 0.5%. Germany\u2019s\u00a0DAX 30\u00a0<\/em>lost 0.4% settling at 12976.37. France\u2019s\u00a0CAC 40\u00a0<\/a>slipped 0.3% and UK\u2019s\u00a0FTSE 100\u00a0<\/em>fell 0.6% to 7372.61.<\/p>\n

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Commodity shares sold off on lower demand concerns after data showed China\u2019s industrial output slowed in October. China is a major consumer of metals and other commodities and strong Chinese demand for commodities is a driver for resource prices. Markets shrugged off further positive data after surprise German GDP report: euro-zone trade surplus increased in September.<\/p>\n<\/div>\n<\/div>\n

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Australia unemployment declines in October<\/h2>\n<\/div>\n<\/div>\n

Asian stock indices<\/b>\u00a0are mostly higher.\u00a0Nikkei\u00a0<\/em>snapped the six-session losing streak adding 1.5% to 22351.12 as yen resumed the decline against the dollar. Chinese stocks are mixed: the\u00a0Shanghai Composite Index\u00a0<\/em>is down 0.1% while Hong Kong\u2019s\u00a0Hang Seng Index\u00a0<\/em>is 0.7% higher. Australia\u2019s All Ordinaries Index rose 0.2% on surprise decline in October unemployment to 5.4% while Australian dollar is little changed against the greenback.<\/p>\n

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Oil higher despite US crude inventory build<\/h2>\n<\/div>\n<\/div>\n

Oil futures prices\u00a0<\/b>are rising today as traders bet OPEC will extend an ongoing output cut agreement during a meeting at the end of this month. Prices ended lower yesterday despite the US Energy Information Administration report domestic crude supplies rose by 1.9 million barrels last week. Gasoline stockpiles also rose 0.9 million barrels. January Brent crude fell 0.6% to $61.87 a barrel on Wednesday.<\/p>\n

\"BRENT\"<\/p>\n

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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 Energy shares lead SP 500 retreat US major stock indices\u00a0pullback accelerated on Wednesday as concerns about tax cuts reform undermined investors risk appetite. The dollar strengthened : 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, rose 0.1% to 93.91. […]<\/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-116569","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/116569","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=116569"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/116569\/revisions"}],"predecessor-version":[{"id":116581,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/116569\/revisions\/116581"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=116569"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=116569"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=116569"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}