Spreadex Market Update

Asian shares fall



Asian shares have fallen for the second consecutive night on investor concerns that the recent rally in global equities was running out of steam. A lack of positivity on the horizon means that investors have been seen locking in their gains. Many analysts expect the bearish tone seen in Asia to spill over to European markets.

Gold traded near its highest level in almost two weeks on prospects for additional stimulus from central banks in Europe and Japan and signs of increased physical demand in Asia. ECB council member Weidmann has announced that the ECB will continue with its accommodative stance “as long as necessary”. Meanwhile, yesterday’s disappointing industrial report means that the Bank of England may be forced into more stimulus.

According to a parliamentary committee, new legislation on tax avoidance designed to target corporations will not address the type of tax avoidance that is of most concern to the British public. A sub-committee in the Lords examining the bill said GAAR would not tackle the practices used by companies such as Amazon and Starbucks to reduce their tax bill.

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