Wall Street traders are in a good mood as everyone and his momma are optimistic about the final tax bill vote this week.
Risk-taking was seen across most asset classes while the U.S. dollar also raked in gains on potentially stronger economic activity down the line. It also helped that the only piece of U.S. data turned out much better than expected.
- Canadian foreign securities purchases up from 16.69B CAD to 20.81B CAD
- U.S. NAHB housing market index jumped from 69 to 74 vs. 70 consensus
Anticipation for tax bill vote
Without much top-tier data on deck for Uncle Sam, U.S. session traders paid extra close attention to updates surrounding tax reform. So far, the developments have been mostly positive, supporting hopes that the Donald could be able to sign the bill into law by the end of the week.
Recall that Republican lawmakers were finally able to hammer out a final merged version of the proposals from Senate and the House late last week, priming for a final vote possibly later today.
This tax bill wold lower the corporate tax from 35% to 21%, which would be good for both businesses and individuals alike. U.S. equity indices reached record highs:
- Dow 30 index rose 140.46 points to 24,792.20 (+0.57%)
- S&P 500 index is up 14.35 points to 2,690.16 (+0.54%)
- Nasdaq is up 58.18 points to 6,994.76 (+0.84%)
Gold dipped in the red on risk-taking while crude oil went for more gains on account of another pipeline shutdown.
- Gold is down to $1,264.30 per troy ounce (-0.09%)
- WTI crude oil is up to $57.32 per barrel (+0.17%)
- Brent crude oil is up to $63.44 per barrel (+0.33%)
Major Market Mover(s):
The scrilla was off to a shaky start but pocketed a few gains as market participants were mostly feeling positive about tax reform, even though there are still doubts that it could lead to a long-term boost.
USD/JPY climbed from a low of 111.34 to a high of 112.59, EUR/USD turned upon reaching a high of 1.1835 then fell to 1.1775, and GBP/USD retreated from the 1.3400 handle to 1.3375.
Surprisingly, the franc was able to rally across the board despite the lack of top-tier events in Switzerland.
USD/CHF is down to the .9850 minor psychological mark, EUR/CHF continued to slide to a low of 1.1617, AUD/CHF is down to .7558, and CAD/CHF dropped to .7662.
Watch Out For:
- 12:00 am GMT: New Zealand ANZ business confidence index (-39.3 previous)
- 12:30 am GMT: RBA monetary policy meeting minutes