Global Equities Grow Supported by US Tax Reform Hopes
Global stock markets are growing in anticipation of the ratification of US tax laws. The US stock indices S&P 500, Dow and Nasdaq all closed at new record levels. The US dollar is trading in a narrow range pending a decision on US tax law.
The US Congress, controlled by the Republicans, may adopt tax laws this week, after it was decided to support the tax reform of Donald Trump in two official agreements in the Senate on Monday.
The euro is trading above $1.1800, but this movement may be limited to elections in Catalonia in Spain this Thursday. It is expected, that the ECB, most likely, will continue to prevent the euro from moving up. To further strengthen the euro requires tightening of the monetary policy of the ECB, which may not appear in early 2018.
Oil prices continue to be supported by the problems of the Forties pipeline and, without certain deadlines for the completion of repairs, are likely to underpin Brent crude growth in the short term.