The main talking point in the US yesterday was that world stock markets reached record levels as Trump’s tax reforms are likely to be passed imminently. They have been heavily criticised for favouring the rich, but the fact that the plan will lower corporate income tax to 21% from 35% is what the markets are most excited about. The Republican Bob Corker has changed his mind and is now in favour of the bill – that he stands to benefit from some last-minute changes to the bill is purely coincidental.
The dollar made some gains against sterling but weakened against the euro in what was a good day for the single currency. Building permit data was released and showed that they fell by 1.4% in November. However, markets had been expecting a 3.1% drop so a negative can be viewed as a positive.
Today we have existing home sales for November which are expected to jump a little to 5.52 million.