Tax Reform and China's Restrictions - This Is What You Need to Know on Friday
This is what you need to know on Friday:
European stocks open lower Friday, following a weaker session in Asia and a sharp sell-off on Wall Street last night that was linked to a planned delay for corporate tax cuts inside a Senate Republican reform bill and a spike in Eurozone government bond yields.
The weakness Thursday was linked to details of the Senate Republican tax plan, which would phase-in corporate tax cuts until 2019 while also providing a far less sweeping series of changes to a U.S. tax code that hasn't had a major overhaul since 1986.
Markets were shaken by a sharp rise in European government borrowing costs as investors dumped bonds amid a robust outlook for the region's economy and subsequently snuffed out a record-setting global stock rally.
China will ease restrictions on foreign ownership of bank and insurance sector firms in the world's second-largest economy, the government said Friday, as President Xi Jingping continues to push his reform agenda following the cementing of his leadership at the Communist Party Congress.
Toshiba (TOSYY) stock dropped in Tokyo Friday on reports it's considering a capital increase as it faces an equity shortfall that threatens it with delisting next year. Toshiba shares closed 5.11% down at ¥297, outpacing the 0.82% fall by the Nikkei. The company's ADR listing fell 7.91% on Thursday.
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