Headlines turned their focus to the U.S. House of Representatives as they passed a tax reform bill Thursday that would reduce corporate tax rates to their lowest level since 1939; the full Senate is expected to vote on its version of the bill after Thanksgiving. If passed the differences between the two will need to be ironed out but whether or not this process can be completed prior to the holidays remains in question. Global growth continues forward at strong paces with both the Eurozone and Japans’ economies matching or surpassing expectations although inflation still remains below Central Bank targets.

For a second week in a row, U.S. large company stocks narrowly declined after seemingly continues record closes. The news regarding the tax reform bill this week sent small company stocks roaring with the expectation that they will be helped a great deal by proposed changes. Developed International stocks declined more than peers despite reasonable growth reported, and emerging markets remain well ahead of most equities. The Treasury yield curve flattened further this week with the 10 year, 2 year spread reaching the tightest range in a decade; the narrow spread will put pressure on the Central Banks ability to tighten monetary policy at the pace it has reported.

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