Equities dislike Trump's tax-hike threats
- Equity investors do not like tax increases. US President Trump is contemplating yet more tax increases for US consumers. Equity investors do not like this. Rumors that Trump will tax US consumers of EU-made cars, and US consumers of US-made cars that use EU-made bits were not well received by US equities.
- US Treasury Secretary Mnuchin is reportedly resuming trade talks with China on trade. Investor reaction may be cautious. Trump decides trade taxes (as commander in chief) – Mnuchin's role is essentially decorative. A trade deal with China may leave the US president searching for another target to attack.
- German Chancellor Merkel speaks to the EU parliament today. What Merkel intends to do over the next two years is of interest to investors. Merkel could potentially provide leadership to the EU, not using the authority of being chancellor of Germany, but using the political abilities being Merkel.
- UK labor market data is due (average hourly earnings are not wages. They really, really are not). The EU and the UK are making positive noises on the interminably tedious divorce process, but markets question whether the UK parliament will agree. That rhythmic thumping sound is economists banging their heads against their desks.