US tax reform debate kicks off, UK’s economic data falters, Trump’s search for Fed Chair continues and Catalan tensions heighten.
Independence is still on the cards
Catalan President Carles Puigdemont declared that the region would go ahead with its pledge for independence in a letter on Thursday. Spain’s Prime Minister Mariano Rajoy said that it would reclaim power over the regional administration.
The political spat sent Spanish stocks 0.85% lower. The euro shrugged off the tensions, climbing 0.4% against the dollar.
European stocks were trading lower, along with most over equity markets. The Dax 30, a proxy for European sentiment, dropped 0.9% of its gains.
UK’s retail sales drop
British consumers failed to take advantage of the mid-season sales and stayed out of the shops for the most part.
Retail sales declined by a whopping -0.8%, missing expectations of -0.1%. The previous month showed a 0.9% change in sales.
The disappointing results sent the pound 0.2% lower against the dollar and 0.62% weaker against the euro.
The lower pound just wasn’t enough to help support the FTSE 100, the index slumped by 0.44%. The bearish tones were helped by a broadly lacklustre mood in equity markets.
European policymakers are in Brussels, discussing the path for Catalonia, the eurozone’s place in the Iran nuclear deal and the future of the EU. Brexit will be placed somewhere down the list of issues up for discussion.
Tax under Trump
The Senate have begun to discuss the Trump administrations tax reform plan, with Republicans in the lead on some key facets of the proposal.
Members are hoping for a bipartisan deal but perhaps their views are too widely dispersed to be able to negotiate with their opposition, the Democrats.
Although, issues like the US-Mexico border wall, immigration, and Planned Parenthood will possibly slow down any potential deal.
The race to Fed Chair
Donald Trump will interview Janet Yellen, the current chair of the Federal Reserve. The US President will discuss the possibility of Yellen staying on as chair for a second term.
Although, during Trump’s campaign trail, the President expressed his dislike of Yellen, making her an unlikely candidate.