Published Dec 20, 2017 04:04PM ET
Updated Dec 20, 2017 04:30PM ET
Bonds Tumble, Equities Mixed as Tax Bill Passes: Markets Wrap
(Bloomberg) -- U.S. stocks fluctuated while Treasury yields climbed to a nine-month peak as the Republican tax overhaul passed its final vote before going to President Donald Trump for his signature.
The S&P 500 Index was little changed Wednesday, held back in part by slumping consumer and real estate shares, while the energy and telecom sectors rose. Core European bond yields followed Treasury rates higher, with European Central Bank asset purchases for the year ending Thursday.
The U.S. Senate approved the tax-cut legislation in a party-line vote and the House of Representatives passed the bill after a re-vote, bringing Trump to the brink of his first major legislative victory. The bill itself will be signed at a later date.
“The tax reform passing, you’d expect the market to celebrate that,” Kevin Caron, a senior portfolio manager at Washington Crossing Advisors, said by phone. “But in reality a lot of this has already been part of the drama over the last year or so in anticipation of this moment. The market has gotten what it has already been discounting in.”
Tech shares led the Stoxx Europe 600 Index to its biggest decline in almost three weeks, with Spanish equities underperforming before Thursday’s Catalan poll. Miners gained as the Bloomberg Commodity Index advanced for a sixth day. The euro climbed against the dollar, as did the British pound. The yen had its biggest decline against the greenback in almost two weeks.
Meanwhile, oil traded above $58 after a report of a drop in U.S. crude stockpiles. Gold edged higher and industrial metals rose.
Earlier, Japan’s Topix index closed at its highest level since November 1991, while stocks in Hong Kong and China declined.
Terminal users can read more in our live markets blog.
Among the key events investors will be watching this week:
And these are the main moves in markets:
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Currencies
Bonds
Commodities
Written By: Bloomberg
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