Jerome Powell is A Chosen One, Tax Bill Announcement

Yesterday, Donald Trump announced that Jerome Powell will be the next Fed Chair. President’s administration published the tax bill, which gave a boost to futures. The bill covers: lowering the amount of income tax brackets from 7 to 4; trimming the top corporate tax rate from 35% to 20% and the pass-through rate for certain business partnerships to 25%; one-time repatriation tax will be 12% and mortgage deductions as well as 10% tax on profits for overseas subsidiaries of US corporations will be cut. The bill will take effect on January 1. DOW lifted 81.25 points (0.35%), closing at the peak. S&P 500 lifted 0.02% to settle at 2579.85. 10 year yield dropped 0.029, ending at 2.347.

ADP private payroll increased 235 thousand in October. 4 week moving average of initial jobless claims fell to 233 thousand from 267 thousand. Employment component of ISM manufacturing reduced to 59.8 from 60.3. Conference Board consumer confidence rose to 17-year maximum of 125.9. As we may judge, labor market remains rather strong. Today’s most anticipated data will be non-farm payrolls.

Australia retail sales increased 0.0% mom in September. China Caixin PMI services lifted to 51.2 last month. Today, Britain will release PMI services and US will announce trade balance, non-farm payrolls, ISM services and factory orders. Canada will show trade balance and employment numbers.