Dollar cheered by the tax cut, eclipsed by bitcoin



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SYDNEY (Reuters) – The dollar held firm on Wednesday after Wall Street shot to record spikes amid signs of progress in US tax cuts, while bitcoin surpbaded $ 10,000 in a series of exchanges already that the cryptocurrency frenzy showed no signs of fading.

Bitcoin and Dollar banknotes are observed in this illustration taken on September 27, 2017. REUTERS / Dado Ruvic / Illustration

The Asian stock markets were not so jubilant, cautiously controlled by the latest missile test of North Korea and concerns to recent softness in Chinese stocks.

MSCI's broader index of Asia and the Pacific shares out of Japan. MIAPJ0000PUS fell a fraction, while China's blue chip index .CSI300 fell 1 percent.

Among those that performed better, Japan's Nikkei .N225 added 0.4 percent, while Australia's main index rose 0.5 percent.

Prospects for a tax cut in the United States appeared to improve after Republican senators approved their bill in a vote by the party committee that established the full Senate vote on Thursday, although the details of the measure remained unchanged. resolve.

The Republican leaders admitted that they still have to gather the necessary votes for approval in the Senate, where they have a narrow majority of 52-48.

Some badysts, however, warned of the risks of unintended consequences if the package was approved.

"The tax cuts will mainly boost the demand side of the economy at a time when the economy has little additional capacity," said Jeremy Lawson, chief economist at Standard Life Investments.

"For that reason, the package will bring activity mainly with most of the stimulus eventually offset by the Federal Reserve raising interest rates more quickly."

Fed chairman Jerome Powell at his Senate confirmation hearing on Tuesday said the case for an increase in December rates was coming together, although he avoided commenting on tax proposals.

BUBBLY BITCOIN

People go through an electronic stock quote outside of a brokerage in Tokyo, Japan, September 22, 2017. REUTERS / Toru Hanai

Powell also hinted at a lighter touch for regulation Bank, saying that the current rules were already strong enough

The financial sector of S & P .SPSY grew 2.6 percent in reaction, its highest daily gain since March 1. That helped the Dow. DJI rise 1.09 percent, while the S & P 500 .SPX rose 0.99 percent and the Nasdaq .IXIC added 0.49 percent. [.N]

In addition to good spirits, data showed that US consumer confidence rose to a high of almost 17 years in November, while housing prices rose sharply in September, which should underpin consumer spending.

All of which helped the dollar recover some ground. Against a basket of currencies, it remained stable at 93,219 .DXY and at a two-month low of 92,496 touched on Monday.

An investor observes an electronic plaque displaying stock information in a brokerage house in Shanghai, China, November 24, 2017. REUTERS / Aly Song

The dollar also rose to 111.54 yen JPY = y instead 10 weeks low of 110.85, while the euro fell to $ 1.1848 EUR =.

That paled in comparison to the bitcoin that flew to $ 10,200 BTC = BTSP on BitStamp, a major trading platform based in Luxembourg.

The latest increase brought its gains for the year so far to more than 950 percent, leaving more than a few observers bewildered.

"The market is very illogical, there is no way to rationally value Bitcoin as an badet," said Thomas Glucksmann, head of marketing at the Hong Kong exchange Gatecoin.

"There is nothing that makes sense because there are no fundamentals behind bitcoin, what people are buying is the idea of ​​how this technology can be used in the future."

In out-of-date commodity markets, gold seemed pretty boring at $ 1,295.00 XAU = one ounce.

Oil gave way to uncertainty about the outcome of the OPEC talks and a surprise increase in crude inventories. [O/R]

U.S. crude CLc1 dropped 32 cents to $ 57.67, while Brent LCOc1 crude lost 43 cents to $ 63.18 a barrel.

Edition of Sam Holmes and Shri Navaratnam

Our standards: The principles of trust of Thomson Reuters.
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