Markets continue to digest new developments from the global financial world. Trump is set for a first major achievement with his tax bill ready to be approved. Global stocks are mostly lower as the bullish sentiment winds down. Elsewhere, Bitcoin fell almost 15% in one day on news of futures launch. These are the top things to know for today.
1. Trump set for legislative victory
Final passage of the Republican tax bill is expected on Wednesday in what would be U.S. President Donald Trump's first major legislative victory since taking office in January.
The U.S. Senate approved the tax-cut legislation in a 51-48 party line vote with the House expected to also give the green light on Wednesday to tax cuts for corporations and individuals.
As no obstacles are expected in the final vote, Trump has already declared his victory and announced a news conference for 18:00 GMT at the White House.
2. Global stocks mostly lower
Global stocks were mostly lower on Wednesday as bullish sentiment over the tax overhaul fizzled in what could be considered the typical case of “buy the rumor, sell the news”. With markets heading into Christmas and New Year’s, traders were likely focused on closing shop for the holidays and trade was expected to be thin.
Wall Street ended lower a day earlier despite the confirmation that the Senate passed the package and, despite needing the rubber stamp from the House on Wednesday, tax legislation was seen as all but a “done deal”.
Elsewhere, European bourses dipped as they seemed to follow the slight profit-taking seen a day earlier on Wall Street. Earlier on Wednesday, Asian shares closed with mixed signs.
3. Bitcoin continues to slump
BCH/USD soared nearly 50% on Wednesday as bitcoin exchange Coinbase announced after Tuesday’s stock market close that it would allow its customers to buy, sell, send and receive the alternative currency.
Bitcoin Cash was the result of the fork of the original Bitcoin on August 1 in an effort to make transactions move faster.
Bitcoin, meanwhile was on track for a fourth day of losses, as bullish trend leading up to launch of CME’s Bitcoin Futures last Sunday appeared to wear off. The number one digital currency by market cap hit an all-time high prior to the launch
On the Bitfinex exchange, Bitcoin was at $17,234.00, down $1680.00 or 8.88%.
4. WTI oil moves higher
Oil prices showed mixed signs on Wednesday as market participants made bets on a bullish U.S. crude stockpile data, but the London barrel struggled to pocket gains.
After the market close on Tuesday, the American Petroleum Institute said U.S. crude oil stockpiles fell by 5.2 million barrels.
The Energy Information Administration will release official government data at 16:30 GMT on Wednesday amid expectations for a decline of about 3.8 million barrels.
U.S. crude oil futures rose 0.31% to $57.74 at 11:02 GMT, while Brent oil slipped 0.03% to $63.74.
