Dec 5, 2017 - Market Update (Brexit and US tax bill market movers, EU to review US tax bill and its implications, S&P 500 & DAX - what's next?, Apple to start to paying back taxes to Ireland in Q1 2018 (EUR 13 bln), Toll Brothers facing lack of skilled labour - an issue for home builders across US)

Short recap

Asia took a break

Europe opening flat to slightly up

US tax bill refining continues as the bill moves from Senate to the House before it lands on Trump’s table

Many have changed the wording from tax reform bill to tax bill

AMT getting challenged as many companies may loose the tax break and pay the 20% alternative minimum tax

EU to assess US tax bill and its global tax implications

Brexit still not moving to phase 2 as getting stopped at Northern Irish border

CBOE launching Bitcoin futures on Dec 10 while CME on Dec 18

Equities

US stocks saw another day of out of Techs rotation

But market was overall down on a small positive long term impact of tax reform

Sanofi having hard time in Philippines

Thyssenkrupp-Tata Steel merger facing unions

Dialog Semiconductor not happy with Apple developing its own battery saving chips

Apple to start to paying back taxes to Ireland in Q1 2018 (EUR 13 bln)

Toll Brothers to report better results on the back of strong job market but facing lack of skilled labour

That may not be the best thing for luxury home builder

S&P 500 daily – a correction back to 2475 level means down 7.1%

Source: Saxo Bank

DAX daily – range bound with 13 047 (100 DMA) support 

Source: Saxo Bank

Bonds

10-yr Trys yield at 2.39%

10-yr Bund yield at 0.33%

EURUSD

US yields keep showing direction for USD

As USD bulls may get frustrated with inability to decisively break 2.40% yield in 10-yr Trys

Resistance 1.1870 (10 DMA), 1.1886 (61.8%), breaking 1.1961 high would be seen as a new direction setter

Support 1.1822 (50.0% Fibo), 1.1810 (38.2% Fibo of 2014/15 decline), 1.1794 (100 DMA), 1.1758 (50 DMA)

Source: Saxo Bank

USDJPY

Not able to break above 113.00 level

Resistance at 112.82 (50 DMA), 112.97 (23.6% Fibo)

Support 111.89 (38.2% Fibo), 111.68 (200 DMA), 111.57 (100 DMA)

Source: Saxo Bank

Gold

Resistance 1281 (50.0% Fibo), 1281-86 (50/100 DMA)

Support from rising trendline holds, then 1267 (200 DMA) and 1263 (61.8% Fibo)

Data/events

EU FinMin meeting

ECB’s Constancio

US Senate banking committee votes on next Fed chair Powell

Dec 13 – FOMC

Dec 14 – ECB

Dec 14-15 – EU Summit talking Brexit

Dec 21 – BoJ

Dec 21 – Catalonia elections

Should you have any questions feel free to contact me anytime.

Good luck Champs!

Mr Hawk

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