Better Late Than Never
Six months since Brexit was officially triggered it seems that talks may finally be on track. After a few short detours, all cylinders are firing today.
Though there are still disagreements in how the UK will look without Europe at least everyone is finally talking about it. Better late than never.
May will be attending a Euro gathering in Estonia today to push her agenda. However, some of the other attendees have very big agenda’s as well.
Emanuel Macron, for example, has just delivered a huge speech on the unification of Europe. His plan is full of specific proposals to make the continent great but will require a lot of work and full focus.
eToro, Senior Market Analyst
Please note that there will be no market update tomorrow due to local holidays. We will resume as normal on Monday October 2nd.
Please note: All data, figures & graphs are valid as of September 28th. All trading carries risk. Only risk capital you can afford to lose.
Markets are currently gushing over Trump’s proposed tax reforms. Some analysts would say that these tax cuts have been the reason markets have been rising since November and that they’re already priced into the markets…
Washington does seem to finally be rallying behind the President and many politicians seem to be generally in favor of reducing taxes. However, the proposal that’s currently on the table is a bit short of expectations.
Donald Trump’s campaign promise was that he would be cutting corporate taxes to 35% to 15%. The draft that he proposed yesterday would only cut it to 20%. Though that’s only 5% more for companies it’s still 25% less than promised.
So we’ll be watching the political stage closely in the United States in the hope that this can actually go through.
As we’ve stated before, central banks are the ones who really move markets. Even though they remain largely behind the scenes to the average person, most of the largest market movements of the past decade have been caused by direct interference from these institutions.
So it pays to pay attention to what they’re saying.
Today, the Bank of England will be holding a grand celebration to mark the 20th independence day. In 1997, then Chancellor Gordon Brown granted the BoE the freedom to set rates and dictate monetary policy.
Of course Mark Carney will be there as well as the assistant governor of the RBA. Theresa May is also expected to attend but I’m not so certain she’ll make it back in time.
Vice Chair of the Federal Reserve in the United States Stanley Fischer will also be speaking at the event. Stanley has recently resigned his post from the Fed for personal reasons. So he may be a bit more revealing today.
Expect volatility in the currency markets throughout the day.
New Crypto Rally
It all started with Ripple, which seemingly out of nowhere gained 10% in the span of an hour. Soon the other cryptos began to join in the fun.
The party peaked when Bitcoin busted through the $4000 level and kept right on through $4100. As of this writing, it’s holding above $4,200.
Ethereum was the last to join the party but did end up breaking through the psychological barrier of $300 by the end of the day. Better late than never!
Not only that. Just in the heat of the rally, the crypto market received some support from the most unlikely of places.
The CEO of Morgan Stanley James Gorman came out in broad favor of Bitcoin as an alternative to central banking.
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He also said that Bitcoin was “more than just a fad.” This is a direct contradiction of what his counterpart at JP Morgan had to say.
Let’s have an awesome day an amazing weekend!
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