The lack of any clear macroeconomic drivers has kept the markets broadly subdued. Investors sold off the US dollar as the proposed tax reforms were rumored to be delayed. The US Senate Republican plan for delaying the corporate tax cuts to 2019 saw even the equities falling back.
On the economic front, the EU commission’s economic forecasts were upbeat on the GDP as the commission said that GDP would rise at the fastest pace in nearly a decade. The Euro managed to recover on the back of the positive assessment. The RBA lowered its inflation forecasts noting that inflation might not reach the lower end of the 2% band until 2019.
Looking ahead, the UK’s manufacturing, construction, and industrial production numbers will be coming out today. The economic calendar is light. Later in the afternoon, the UoM’s consumer sentiment and inflation expectations data will be released.
