Dollar, stocks fall on Trump woes
- Author: Zachary Reyes Mar 28, 2017,
Mar 28, 2017, 5:08
House Republican leaders chose to withdraw Trump's healthcare bill meant to repeal and replace Obamacare amid indications of a lack of support.
So-called "Trumpflation trades" - betting on an extended recovery in the US and global economies and related assets such as commodities - came under heavy selling pressure. U.S WTI crude futures lost 32 cents on Monday morning, trading down 0.7 percent to $47.65 per barrel.
The dollar was weaker against most currencies following the defeat of Donald Trump's planned healthcare reforms on Friday. The South Korean won was up 0.7 per cent at Won1,114.60 per dollar, its highest level in almost five months.
USA stock index futures were down in early Monday, the stock index is now caught in a six-week in heavy low as it decreases as much as 0.7% just after the bell rings.
The inability to advance the bill has cast doubt on Trump's ability to deliver on promises of increased infrastructure spending, tax cuts and deregulation.
Pence said, in the end, Congress wasn't prepared to repeal and replace.
Gold rallied in the face of market volatility, climbing 1 per cent to $1,256.41 per ounce.
Following the defeat on US healthcare legislation on Friday, the White House warned rebellious conservative lawmakers on Sunday that they should get behind Trump's agenda or he may bypass them on future legislative fights, including tax reform.
The Republican head of the tax-writing committee in the House of Representatives said he hoped to move a tax bill through his panel this spring. The euro traded 0.45% higher at $1.0847 following its strongest rise last December at $1.0849. Japan's Nikkei 225 Index tumbled by 1.4%, while Hong Kong's Hang Seng Index slid by 0.7%.
Shanghai Futures Exchange copper slid by 0.7 percent to 46,680 yuan ($6,785) a tonne while Australia's benchmark metals and mining index declined as much as 1.7 pct, its lowest since March 14.
The dollar index, a measure of the greenback's strength against a basket of six global currencies, fell to 99.04 by 06:45 GMT, the lowest level since the immediate aftermath of Trump's election in early November. Brent crude, the worldwide benchmark, was off 0.2 per cent at $50.72 a barrel while the United States marker, West Texas Intermediate, was down 0.3 per cent at $47.82.
US equity futures now suggest an extension of Friday's late-session declines on Wall Street, with the Dow Jones Industrial Average poised to fall 88 points at the opening bell, the S&P 500 13.75 points and the Nasdaq 28.5 points.