The Tax reform bill passed through the Senate late on Friday night by a vote of 51 to 49. This is the latest in a diminishing line of hurdles that it needs to overcome before it is finally signed off by POTUS, Donald Trump.
The Dollar and US futures are significantly higher this morning as a consequence with the DOW in early trade this morning showing gains of 220 points but earlier hitting highs of 24,477. This all comes after various negative pieces of news sent the DOW spiralling 350 points lower in late morning trading on Friday.
All Indices show gaps this morning after the FTSE and DAX are called 50 and 130 points higher first thing this morning. This is a US story though and I expect some of the rallies to be short lived. The Nikkei225 lost 111 points overnight whilst the Hang Seng traded positively, indicating the mixed response to the news.
With all the stimulus being added to the US markets, and the debt bill having estimates of $1trillion added, there is a real fear that interest rates will rise quicker than anticipated.
This morning, I have placed one paired trade, selling DOW futures whilst buying FTSE futures. This trade worked particularly well in early trading on Friday and it will allow me the exposure to the DOW that I am really looking for.
I have SOLD DOW futures at 24,457, minimal risk, 50pip stop
I have BOUGHT FTSE futures at 7364, minimal risk, 50pip stop
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