• MTS Economic News_20170718

    18 Jul 2017 | Economic News


• In Europe, futures for the Eurostoxx 50 and the DAX were both down 0.4 percent, while the FTSE was 0.3percent lower.

The dollar, already down in early trade, extended losses. It slipped 0.5 percent on the day to 112.14 yen, well below its nearly four-month high of 114.495 touched last week.

The euro jumped 0.4 percent to $1.1522, after earlier pushing to its highest since May 2016.

The dollar index, which tracks the greenback against a basket of six major rivals, wallowed at 94.791, down0.2 percent after plumbing its lowest levels since September 2016.

• President Donald Trump campaigned on cutting the U.S. corporate tax rate to 15 percent, but administration officials said on Monday negotiators engaged in closed-door talks are now shooting for a little over 20 percent because they realize the super-low rate would balloon the federal deficit.

Republican leaders in the House of Representatives and the Senate are unlikely to allow the budget deficit to grow, so officials said they now hope for a corporate tax at the low end of a 20 percent to 25 percent range.

• Philippine President Rodrigo Duterte has asked Congress to extend martial law in Mindanao until the end of the year, to allow the armed forces to quell Islamist militancy in parts of the southern island, his spokesman said on Tuesday.

• Egypt will end visa-free entry for Qatari nationals with some exceptions, the Egyptian Foreign Ministry said on Monday, the latest measure taken against Doha which Cairo and three Gulf governments are boycotting.

• Above-target inflation won't push the Bank of England to tighten monetary policy this year or next as it waits to see if wage increases catch up with price rises and how divorce talks with the European Union pan out, a Reuters poll found.

• China's central bank said on Tuesday that it will strengthen the coordination of financial regulation across different agencies, following a once-in-five-years top level financial work meeting on the weekend.

The central bank will carry out the duties of the office of the new financial stability and development commission that China has set up to tackle financial risks, the People's Bank of China (PBOC) said in a statement.

• Qatar said it believed a media report citing U.S. officials had revealed the responsibility of the United Arab Emirates in an alleged hack on its state news agency in late May which helped spark a diplomatic rift between Doha and its neighbors.

• Oil markets steadied on Tuesday, supported by firm demand but weighed down by high supplies from OPEC and producers in the United States.

Benchmark Brent crude was down 10 cents at $48.32 a barrel by 0720 GMT. U.S. light crude oil was 10 cents lower at $45.92.


Reference: Reuters

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