- Global stocks take a break from the bull run
- US Senate delays the vote on tax reform bill
- OPEC strike a deal on Production curbs
Delays on US tax reform has dampened sentiment in stock markets. The US Senate has decided to push back the vote on US tax reform. The lack of progress has caused caution in equity markets, sending valuations lower.
European equities are in the red, as Germany’s DAX 30 gives up a whopping 1.45% of its gains. France’s CAC 40 fell by 1.26%, while Italy’s FTSE MIB has dropped by 1.27%.
The lacklustre mood has spread across to Asian markets, as the China A50 losses 2.2% and the HSI falls by 1.37%.
After yesterday’s rally in US stocks took the Dow Jones to over $24,000, news of the tax delay diminished gains. While the Dow Jones remains over $24,000, it has lost 0.25% of its value. Wall Street’s S&P 500 has given up 0.37% and the tech-heavy Nasdaq 100 has lost 0.68%.
Technology stocks have lost around 5% of their gains this week, as investors re-funnel investments, taking profits at the highs.
Meanwhile, the dollar has held its composure, only marginally lower against a basket of its peers.
The euro is 0.1% lower against the greenback, while the pound has lost 0.25% against the dollar.
Japan’s yen gained traction thanks to the subdued mood in stock markets. The safe-haven currency has added 0.19% against the greenback as investors seek shelter from falling stock prices.
OPEC and its allies have agreed to extend production cuts through 2018, sending oil prices higher.
Brent oil, the international benchmark, is up 0.62% per barrel, while the US benchmark, crude oil, has gained 0.6%.
Gold has moved 0.23% higher as investors re-direct bullish bets into the safe-haven metal.