Market Headlines – 10/11/2017
- US stocks closed lower Thursday, retreating from record highs on the back of growing concerns that tax reforms could be delayed until 2019.
- A proposed plan by Senate Republicans would delay the implementation of tax cuts to 2019. This contrasts with a bill currently working its way through the House that aims to put tax cuts into effect this year.
- The S&P 500 ended 0.4% lower, staging a partial recovery into the close. Industrials and Materials were the worst performing sectors on the day, losing 1.3% and 0.9% respectively.
- European equities closed notably lower yesterday following a batch of disappointing earnings reports.
- The Euro Stoxx 50 index fell 1.2%, its largest daily decline since August. The German DAX lost 1.5%, the French CAC ended 1.2% weaker and the Spanish IBEX closed 0.9% weaker.
- Shares of luxury brand Burberry fell 10% after it revealed the cost of its new transformation, including store renovations. Vestas, the world’s largest wind turbine manufacturer, lost 20% as it lowered 2017 profit guidance. German sports retailer Adidas also fell 5% despite reporting upbeat results, highlighting elevated expectations heading into the numbers.
Japanese equities took the lead from their US and European peers this morning, declining 0.8% in conjunction with a rise in the yen. Telecoms and Utilities were the primary contributors to the negative session, falling 1.9% and 1.7% respectively.