- Stocks sell-off as investors focus on the US political arena
- Dollar and US equities slide as doubts over US tax reform mount
- Brent oil trading down after a tumultuous week
US investors are unnerved by the uncertainty over US tax reform progress casts a bearish tone on markets.
Senate Republicans faced losing support as Florida senator Marco Rubio said he would not vote for the tax revamp unless changes were made to child tax credits.
The dollar is 0.22% lower against a basket of currency pairs as a result. The greenback has lost 0.2% against the Japanese yen.
The euro is 0.2 higher against the dollar after the European Central Bank’s upward revision to its growth and inflation forecasts on Thursday.
Sterling is 0.25% lower against the dollar after the Bank of England said that further modest rate hikes were less likely.
US equities are marching higher despite the cautious feel in the broader stock market. Wall Street’s S&P 500 is 0.28% stronger, while the tech-heavy Nasdaq 100 is 0.32% higher.
On the other side of the Atlantic, European stocks are starting to edge slightly higher. Germany’s DAX 30 has added 0.02%, while France’s CAC 40 has gained 0.07%. London’s FTSE 100 is flat.
Asian stocks are feeling more lacklustre. Hong Kong’s Hang Seng is 1.17% weaker, while the China A50 is 1.68% lower. Technology stocks led the declines overnight as investors rushed to take-profits at the highs after the People’s Bank of China raised the rate on its marginal lending facility on Thursday.
After a choppy week Brent oil is flat at $63.42. The oil market has been volatile over the past month, creating tumultuous week for oil prices.
The IEA predict that 2018 will be a big year for US shale drillers, which will negatively affect the price of oil thanks to the increase in supply. News of this sent oil lower, as investors grew concerned over OPEC’s ability to rebalance the oil market.
Gold is 0.46% higher thanks to the sell-off in equity markets. The precious metal is trading at $1258.
Bitcoin has risen 10.07%, the digital asset has passed the $18000 target mark.