Greenback Weakens, Trump’s Tax Plan Is Doubtful
The greenback is softening. At first, Donald Trump’s tax plan was taken rather warmly, but then investors lost their confidence. It’s about to be approved by the Congress but it’s unlikely to improve the economy. Some people judged that thee plan will help rich people rather than poor. DOW increased 0.18% and closed at 22381.20. S&P 500 hit the maximum of 2510.06. 10 Year yield lifted to the maximum of 2.344, but then reduced to 2.309.
Bank of Japan released its Summary of opinions. The document reflected members’ readiness for the expansion of the monetary stimulus. But, some of them preferred to stand pat. BoJ is also worried about the whole US-North Korea drama. Shinzo Abe officially declared that he will dismiss the Lower House and call for the snap election on October 22. Abe wants to preserve his post with his LDP (Liberal Democratic Party). But, polls demonstrated that Yuriko Koike (Tokyo Governor) and his Party of Hope got 18% of support while LDP had 29%.
Japan National core Consumer Price Index rose from 0.5% yoy to 0.7% yoy last month. Tokyo core Consumer Price Index improved from 0.4% yoy to 0.5% yoy. Unemployment rate remained at 2.8%, household spending was up 0.6% yoy, retail sales grew 1.7% yoy, industrial production accelerated 2.1% mom. New Zealand building permits lifted 10.2% mom in August. British Gfk consumer confidence boosted to -9 this month. Today, Eurozone will release Consumer Price Index, Germany will announce unemployment and retail sales. Swiss will show KOF leading indicator. Britain will publish final Gross Domestic Product of the second quarter, M4, mortgage approvals and current account. The US will feature personal income and spending and Chicago PMI. Canada will announce Gross Domestic Product and IPPI/RMPI.