US: Tax reform bill in focus - BBH

In the US, both the House and Senate approved its version of the tax reform bill as the Senate passed it 51-48 just after midnight, notes the research team at BBH.  

Key Quotes

“Due to procedural issues, the House must return to the House for one final vote today but that’s a foregone conclusion.  Passage has been widely expected for days, and so the market reaction today has been largely muted.”

“With the package coming in pretty much as expected, the main question is how this bill will impact the midterm 2018 elections.  Polls show widespread skepticism over the benefits of the bill for the middle class.  Politicians from both sides of the aisle will be watching these polls closely as 2018 gets under way and the jockeying picks up ahead of the November vote.”    

“During the North American session, the US reports November existing home sales.  A gain of 0.9% m/m is expected.  Yesterday, the market got an upside surprise in November housing starts and building permits.  Canada also reports October wholesale trade sales.”