Global markets were mostly higher overnight as Republican-led efforts to slash corporate tax rates cleared a major hurdle, with investors picking stocks that have lagged for much of the year.
Financial stocks were once again winners, while Technology stocks continued to come under pressure, with the Nasdaq Technology index selling-off. We are seeing a rotation continue away from technology stocks (which are likely due for a breather after an amazing run year to date), particularly into financial stocks. Not only are financial stocks set to benefit from lower tax rates in the US, but as we have discussed previously higher interest rates generally improve the interest margins for banks. Further, Tech stocks are not seen as major beneficiaries of potential tax reform in the US.
Stock in Focus: G8 Education (GE...
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