GLOBAL MARKETS-Stock indexes, dollar dip on U.S. tax reform doubts

From Reuters - November 10, 2017

NEW YORK (Reuters) - World stock markets and the U.S. dollar edged lower on Friday on signs that U.S. tax reforms could be delayed after Senate Republicans offered a plan that differed significantly from the House of Representatives version.

MSCIs global stock index .MIWD00000PUS, which tracks shares in 47 countries, declined 0.2 percent, slipping further from a record level. On Thursday, the global index fell 0.4 percent following 10 straight days of gains.

The pause that the market is currently in is directly related to whats going on from a tax standpoint, said Jim McDonald, chief investment strategist for Northern Trust Corp (NTRS.O).

The MSCI world index has surged more than 20 percent so far this year, and some investors believe a pullback is due.

The hiatus over tax reforms weighed on the U.S. dollar. The dollar index .DXY, which tracks the unit against six key world currencies, fell 0.1 percent, and is set for its biggest weekly drop in four weeks. [FRX/]

Wall Street retreated on concern over delays in corporate tax cuts, though a rise in media stocks limited the slide. [.N]

The Dow Jones Industrial Average .DJI fell 41.17 points, or 0.18 percent, to 23,420.77, the S&P 500 .SPX lost 5.45 points, or 0.21 percent, to 2,579.17 and the Nasdaq Composite .IXIC dropped 7.84 points, or 0.12 percent, to 6,742.21.

The pan-European STOXX 600index was on track for its worst week in three months, down 0.2 percent on Friday and falling for a fourth day in row. [.EU]

Theres a feeling out there that theres a long-awaited correction, and no one wants to be caught by surprise, Emmanuel Cau, global equity strategist at JP Morgan, said.


U.S. Republican senators said they wanted to slash the corporate tax rate in 2019, later than the Houses proposed schedule of 2018, complicating a push for the biggest overhaul of U.S. tax law since the 1980s. [nL1N1NF1MG]


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