Global markets continue to rise on Tuesday as sentiment remains positive. Trump’s administration’s tax reform is heading into its final stages. Elsewhere, Bitcoin fell below the 18K level after Bitcoin futures debuted on the CME Group’s on Sunday. Meanwhile, the USD fell lower and Oil prices bounce back from recent losses. Here’s all the top things to know for today.
1. Global stocks surge continues
Global stocks continued the upward trend on Tuesday with few obstacles in their path as investors ride the bullish wave of enthusiasm of U.S. tax reform.
U.S. futures looked set to add slight gains on Tuesday after all three major benchmarks closed yet again at record highs a day earlier.
Elsewhere, European bourses showed more restraint in continuing the uptrend as they underwent muted trade in a session with few indicators.
Earlier, Asian shares were mostly higher on Tuesday with Tokyo down slightly as the market took a cue from Wall Street overnight.
2. House to push forward tax bill
The long-debated U.S. tax overall appeared to set to enter the final stages of approval with the House of Representatives expected to vote on the bill at around 18:30 GMT on Tuesday. The Senate vote is expected to follow either later on Tuesday or on Wednesday.
Republicans have convinced their holdouts to back the bill, suggesting that the proposal with me swept through the Republican-controlled Congress for a final signature into law by U.S. President Donald Trump.
Despite the continuous debate over whether the bill only favors the rich or whether it will help the middle class, stock markets cheer the clear benefit for the corporations who are set to receive a cut in the income tax rate to 21% from the prior 35%. Benefits that several top-tier firms have promised to pass onto shareholders.
“As the world watches, we are days away from passing historic tax cuts for American families and businesses,” Trump declared late Monday, adding that “it will be the biggest tax cut and tax reform in the history of our country!”
3. Bitcoin falls below $18,000
Bitcoin extended losses on Tuesday as the CME group’s launch of bitcoin futures trading showed investor appetite for bitcoin futures remained subdued, while rival Ethereum pared gains after hitting record highs.
Bitcoin futures debuted on the CME Group’s on Sunday but investor uptake was fairly muted, easing expectations that the launch of bitcoin futures trading would extend the digital currency’s impressive rally. The largest digital currency by market cap was still on track for monthly gains of around 80% in what would be its biggest monthly rally in four years, even after a 1,800% surge year-to-date.
Ethereum, the second largest cryptocurrency by market cap, rose 3.19% to $810.74, but off all-time highs of $863 hit earlier in the session. Ethereum has surged recently amid reports that Swiss banking giant UBS would lead an Ethereum-based blockchain platform.
4. Oil bounces back, USD slips
Oil prices recovered on Tuesday from the prior day’s losses as investors looked ahead to weekly data on U.S. crude inventories.
The American Petroleum Institute will release its weekly crude oil stockpiles after the market close Tuesday, ahead of the official government data to be released on Wednesday.
Analysts have forecast an inventory draw of about 3.3 million barrels, supporting oil prices.
The dollar slipped slightly against other major currencies in quiet trade on Tuesday, as investors were reluctant to make big trades in the holiday season during a slow week for economic data.
On Tuesday, market participants will watch the release of November housing starts and building permits out at 13:30 GMT.
On Thursday, the final reading of third-quarter U.S. growth will be the main focus for global financial markets this week, as investors begin to wind down trading activity before the Christmas and New Year holidays.
