Global Shares Slip As Trump Agenda Fails
- Author: Leroy Wright Mar 28, 2017,
Mar 28, 2017, 4:58
The inability to overhaul the USA health care system, a major campaign promise of President Donald Trump and his allies, marked a significant setback for the president in a Congress controlled by his own party.
Late in the trading day, House Republican leaders chose to withdraw the bill amid indications of a lack of support.
Chicago traded futures on the Nikkei 225 were about 0.7 percent higher than the level when the cash market closed in Tokyo on Monday.
The dollar index against a basket of major currencies was down by 0.3 percent, at 99.299, after going as low as 99.292, its lowest since February 2.
HCA Holdings jumped $4.45, or 5.2 percent, to $90.49 for the biggest gain in the S&P 500. But it shed 1.2% over the week, its largest weekly loss since December.
On the currency front, the USA dollar is trading at 110.17 yen compared to the 111.34 yen it fetched at the close of NY trading on Friday. West Texas Intermediate was down 0.7% to $47.63 a barrel and Brent crude was off 0.5% to $50.57.
LONDON: The dollar slid to a four-month low against a basket of currencies on Monday as investors weighed the prospects of a U.S. fiscal spending boost under President Donald Trump after his failure to push through a key healthcare reform bill.
About 6.3 billion shares changed hands in US exchanges, below the 7.1 billion daily average over the last 20 sessions. Dow futures tumbled as much as 184 points.
Bucking the weaker trend among European stocks were precious metal miners such as Randgold and Fresnillo, both up more than 1 percent, as risk aversion boosted gold.
USA long-dated Treasury yields fell to one-month lows on Monday, knocked by growing uncertainty about whether the Trump administration could deliver on its campaign promise to bolster the economy. Antofagasta was down 39p to 791.5p, Glencore fell 14p to 305.75p and Anglo American dipped 49p to 1,203.5p.
Bonds continued to rally, with the Treasury 10-year yield falling below 2.4 percent, as investors weighed the chance of slower inflation necessitating less need for quicker interest-rate increases from the Federal Reserve.
Japan's Topix lost 0.9 per cent and Australia's S&P/ASX 200 Index retreated 0.5 per cent, led by a slide in materials producers.
The S&P 500 posted 11 new 52-week highs and 7 new lows; the Nasdaq Composite recorded 62 new highs and 54 new lows.
The Dow fell as declines in shares of Chevron and those of Verizon Communications, down 1.6 per cent and 1.3 per cent respectively, outweighed gains in shares of DuPont and those of Intel, up 1.4 per cent and 0.7 per cent respectively. At 99.038 in early London trade, the index had been at its lowest since three days after Trump was elected in November, before recovering to 99.132 by 1145 GMT.
British banks Barclays, Standard Chartered and Lloyd Banking have also moved lower after the Bank of England said it would add a new stress test to see how Britain's banks plan to adapt to the U.K.'s withdrawal from the EU.