Analysts at Nomura explained that there were developments on the US politics front this week.
“The Trump administration stepped up its rhetoric on tax reform, presenting a modest set of guidelines for tax reform yesterday, which were scant on details.
The key elements included a reduction in the top corporate tax rate from 35% to 15%, a shift to a territorial system for corporate taxes, a temporary tax reduction for the repatriation of profits earned abroad, a reduction in the number of personal tax brackets and a decline in the top rate to 35%. That said, the details provided were insufficient to assess the budgetary impact.
According to our US economists, the announcements do not change their expectations that only modest tax cuts with little reform will end up being passed by Congress.”