Markets closed slightly down as investors digest several factors, like the French election, oil rig counts, the South Korean election, the after hours firing of FBI Director James Comey, etc etc. Here’s what I can glean….
$1 The secondary and tertiary effects of Macron’s election will be quiet and resounding at the same time. His landslide election stands as a resounding repudiation of populist platforms in France and reinforces support for the European Union (sans Britain). The EU’s negotiating power against the UK should be stronger as a result.
$2 Hopes of a tax holiday or tax reform in the US continues to gather steam as the House passed a repeal and replace plan for the Affordable Care Act, a major hurdle to tax reform. Though the bill faces lengthy rewrite from the Senate, markets are hopeful for tax reform after the health care debate.
$3 South Korea’s Moon Jae-in won the presidential run off, an interesting twist in the Korean peninsula. Mr. Moon favors closer ties with North Korea, an habitual provocateur in international politics. Closer ties on the peninsula only add to the drama emanating from the part of the world. Market could jitter.
That’s it for now in this world of uncertainty.