Weekly Outlook: Records and Global Minimum Tax Records. Inflation worries have not weighed heavily on the markets. USA and Europe, prices continued to rise. The DAX even reached a new record high last Friday. But what’s next?
News from the US market and FED
The US labor market data last Friday was not as strong as expected. The markets could benefit from this. By hoping for a further stronger economic recovery.
There was also news from the US Federal Reserve. Corporate bonds and ETFs on corporate bonds that were acquired during the corona pandemic should be sold again by the end of the year. Their sales should begin soon and be completed by the end of the year. Compared to the $ 120 billion a month spent on buying government bonds and mortgage paper, the amount of corporate bonds bought is rather small anyway.
Is the global minimum tax coming?
The G7 countries were also active. In the future, there should be a global minimum tax of 15 percent for multinational corporations. However, the OECD countries and the G20 countries still have to agree to this project. These also include India and China. Tax havens like Ireland are not yet enthusiastic. Since this would mean higher taxes for the US tech companies based there. Future goal of politics: The location of a company is no longer decisive. But where you generate your sales. This could then also affect German companies.
What’s in store for us this week?
Here you should keep an eye on the ECB interest rate meeting on Thursday. A change in money policy is not expected. However, one should pay attention to what ECB President Christine Lagarde has to say about the economy and inflation. Key economic data from the US will also be released on Thursday.