Today: Friday, 12 August 2022 year

European markets trade lower as investors digest US tax overhaul: Catalonia, Brexit matter

European markets trade lower as investors digest US tax overhaul: Catalonia, Brexit matter

The financial experts warn that the European markets were lower Thursday after the U.S. Congress approved an overhaul of the U.S. tax code that will cut corporate tax rates, CNBC reported. Additionally, Europe faces several problems like the neverending Brexit process and the controversial political situation in Spain – Catalonia issue is still an extremely actual one.

Election in Catalonia

The Spanish autonomous region of Catalonia will choose a new local government on Thursday.

The vote was called in October when Madrid took control the Catalan government after lawmakers there made a unilateral declaration of independence.

The saga has taken a toll on Spanish markets and revived fears about the stability of the eurozone.

Brexit weakness

The number of cars manufactured in Britain fell 4.6% in November, according to the Society of Motor Manufacturers and Traders.

Domestic demand for cars declined more than 28% from the previous year, while exports rose 1.3%.

The industry group blamed a lack of clarity over Brexit for the weakness.

The British government has not said what kind of a trade deal will it seek with the EU — its biggest trading partner — after it leaves the bloc in March 2019.

Shutdown for Christmas

It is pretty logical because of Republicans scored a big win this week by passing a sweeping overhaul of the U.S. tax system. But they’ll need to act quickly to avoid a government shutdown.

Congress must pass a stopgap funding bill before midnight on Friday, or risk an embarrassing closure of government agencies.

Republicans in the House and Senate — who have competing legislative priorities — were still at loggerheads over a potential deal on Wednesday evening.

One potential outcome is another short-term budget extension that will keep funding at current levels.