The FTSE was up 14 points this Tuesday morning as a bare economic calendar enabled investors to continue to focus on the positive equities sentiment provided by the US TAX Reform Bill which is likely to find approval later today.
Spreadex analyst, Connor Campbell noted “Unsurprisingly investors have ignored the nuances of the Republican tax ‘reforms’ – especially the impact it will have on the American middle class – to instead revel in what it means for the nation’s mega-corporations and millionaires.”
The Dollar isn’t sharing in the excitement of the equities markets however. “USD is ‘treading water’ ahead of the expected enactment of President Trump’s tax bill.” suggests FxPro analyst, Edward Anderson. “The initial euphoria of lower corporation tax has begun to come into doubt as many believe there will be no rush for Corporations to move funds back to the US as the repatriation of foreign profits is a permanent measure that companies will avail themselves of over a period of time. ”
It was another session of record closing highs by US equities as investor optimism on the Tax Reform Bill sent stocks higher. Accendo Markets analyst, Mike van Dulken commented “Once again, the Tech-focused Nasdaq outperformed, closing just shy of 7000pts, while the S&P 500 advanced on materials and telecommunications strength and the Dow Jones saw large-cap stocks (Caterpillar, Goldman Sachs, Apple) contribute the most gains.”