Bourses stateside closed the session little changed. Optimism surrounding prospects for US tax reform dissipated somewhat since Wednesday’s announcement, which also led to a pullback in the Greenback. In the afternoon, White House Economic Adviser Cohn added that he hopes to get tax reform done in the House by October and in the Senate by November. In fixed, Treasuries remained mixed at the close with the 30-year bond lower and the rest of the curve in the green – US government bonds nudged slightly higher after a strong seven year note auction. Elsewhere, the Mexican Central Bank kept their benchmark overnight rate on hold at 7.00% and signalled to change to their current rate trajectory. In Europe, European Parliament’s Vehofstadt took a swipe at UK PM May as he suggested that she has chosen Florence for her EU speech because she is familiar with the 15th century Florentine political traits of backstabbing and betrayal. He added that Brexit is very negative and a waste of time and energy.
Ahead of the European open, New Zealand’s building permits rose 10.2% m/m in August. Meanwhile, ECB Chief Economist Praet said French President Macron’s reforms are very encouraging.
Looking ahead, we get Japan’s CPI, jobs report, overall household spending, retail sales, industrial production, department store & supermarket sales, loans & discounts corp, vehicle production, housing starts and construction orders. We also get China’s Caixin manufacturing PMI, Australia’s private sector credit, South Korea’s industrial production and current account balance. From Europe, we get the UK’s consumer confidence and Lloyds business barometer. Elsewhere, Australia sells A$800 Mln 2.75% 2028 bonds. Also of note, we get the BoJ’s September meeting Summary of Opinions.