US Shares Hit Maximums, Some Progress In Tax Bill

Market Reviews

US stocks has met maximums as the Budget Committee approved Senate version of the tax bill. That means the final vote will be on Thursday. DOW increased 255.93 points (1.09%) to close at 23826.71. S&P 500 rose 25.62 points (0.98%) and settled at 2627.04. NASDAQ was up 33.84 points (0.49%) and ended at 6912.36. Greenback improved as well. Sterling has strongly reinforced thanks to the news that Britain and European Union have settled the divorce bill. The UK will have to pay 45-55 billion euros to the EU. The sides are about to discuss the final amount. North Korea flew another intercontinental ballistic missile, which turned out to be the highest reaching missile ever. This suggests that NK can hit anywhere in the US land. Market showed no reaction to the news. Today, Janet Yellen will have her last Congressional testimony.

Jerome Powell confirmed the case of a rate lift in December. He added that inflation will rise and that current policy fits economic condition. Neel Kashkari (Minneapolis Fed President) claims there’s no need in policy regulations because inflation will eventually pick up thanks to firm job market. Minneapolis Fed President disagrees with the idea of rate hikes. Stephen Poloz (Bank of Canada Governor) stated that Canada’s financial system remains strong, economic growth improves and job market grows. But, he admitted that the main problem is high levels of household debts.

Reserve Bank of New Zealand will ease some restrictions on home loans. Japan retail sales grew 0.8% yoy last month. British BRC shop price declined -0.1% yoy this month. Germany will release Consumer Price Index, Eurozone will announce confidence indicators, France will show Gross Domestic Product, Britain will feature mortgage approvals and M4, Swiss will present UBS consumption indicators and the US will announce revisions of Q2 GDP, pending home sales and Fed's Beige Book.