It was a mixed day on Monday in what will be a subdued week for global markets.
Wall Street indexes inched higher pushed by gains in technology stocks. At 9.39am ET (1339 GMT), the Dow Jones Industrial Average was up 30.76 points.
With no major US earnings or economic data scheduled this week, trading volumes were expected to thin leading up to Thursday’s Thanksgiving holiday and an early close on Friday.
“With earnings season now out of the way, macro news and the prospects of tax reform will basically guide the market,” said Peter Cardillo, chief market economist at First Standard Financial in New York.
“I don’t expect the market to endure any sharp sell-off or sharp gains [today].”
The US House of Representatives passed their version of a tax bill last week. But the Senate, from which it has already faced resistance, is expected to vote on their version of the bill after Thanksgiving.
Any signs of repositioning ahead of the vote would be liable to impact investors’ thinking on the bill.
Investors are also looking ahead to the Christmas shopping season, a pivotal stretch for retailers. There was no pattern among leading retailers early in the trading session, with Best Buy and Macy’s higher and Williams-Sonoma and Target lower. Analysts expect good overall holiday sales due to the solid US economy, but predict some retailers will struggle to keep profit margins robust due to heavy discounting and the influence of online options.
Earlier in the day the euro and European stocks dipped in early trades after coalition talks collapsed in Germany. They later recovered as investors turned their focus back to improving fundamentals.
The euro pared a decline and stocks gained as investors digested a return of political risk in Europe. The dollar rose and Treasuries edged lower.
The Stoxx Europe 600 Index advanced as Germany’s DAX rebounded from a seven-week low, with investors judging the failure of German Chancellor Angela Merkel’s coalition talks won’t threaten the region’s economy.
