Tax cut u-turn?
The S&P 500 opened 1 per cent higher as the bell rang for a new chapter in Donald Trump’s presidency. The FTSE held firm against the news that the Democrats took the House of Representatives from the Republicans, who have in turn increased their seats in the Senate. It will now be harder for Trump to pursue the low-tax agenda that has encouraged rapid US stock market growth since his term began. His legacy appears intact for now, though. It is yet uncertain whether the Democrats will be able to roll back tax cuts or introduce new regulation.