Overview
The direction of US monetary policy has become more transparent thanks to Federal Reserve chair Janet Yellen’s latest speech. Yellen boosted expectations for a December rate hike, sending the dollar to a 12-week high.
Meanwhile, the US political agenda seems more murky. President Trump will announce his highly-anticipated tax plan today which will ignite a tussle in Congress.
Currencies
The euro is 0.2% lower as investors pile in bullish bets to its alternative – the dollar. The pound is 0.5% weaker.
Investors are shrugging off the heightened tensions between North Korea and the US. Safe-haven currencies are shedding gains, with the Japanese yen losing 0.2% and the Swiss franc falling by 0.6% -its weakest in 14 weeks.
Equities
US tax reform has been brought into focus in equity markets. The prospect of allowing companies to write off capital expenditure for five years has elevated stocks.
Investors have veered away from the disappointing German election results, placing bullish bets in European equities. Germany’s DAX 30 has jumped to its highest level in 5-months, up 0.5%. France’s CAC 40 is 0.2% higher, while the FTSE 100 is enjoying the weaker pound, up 0.13%.
Commodities
Concerns over Turkey’s threats to turn off the pipeline have subsided. Brent oil has lost 0.9%, trading at $57.52. The US benchmark, crude oil, has given up 0.63%, trading at $51.78.
Gold has retreated as geopolitical risks fail to draw investor attention. The precious metal is trading under the psychological level of $1300, at $1290.50.
Coming up
