On 27 March, 2017 – Global Stocks retreat

Investors were disappointed by the failure of Trump’s health care initiative.
United States
Stocks began the day on a down note with major market indicators falling to their lowest levels since early February in intraday trading. However, the indices recouped most of their losses in later day trading. The Dow was down 0.2 percent, the S&P was 0.1 lower but the Nasdaq was 0.2 percent higher. It was the first full day of trading after the failure of the health care law cancelation on Friday and as doubts mounted about the Trump administration’s ability to deliver on pro-business policies.
Shares of banks and other financial companies including Goldman Sachs, Bank of America and Morgan Stanley declined. However hospital operators including HCA, Universal Health Systems and Community Health Systems advanced.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was unchanged at US$1,247.50. Copper futures were up 0.2 percent to US$2.64. WTI spot crude was down 18 US cents to US$47.79. Dated Brent spot crude was down 1 US cent to US$50.79. The US dollar was down against the euro, yen, pound and the Swiss franc. The currency was unchanged against the Canadian and Australian dollars. The Dollar Index was down 0.1 percent. The yield on US Treasury 30 year bond was down 3 basis points to 2.98 percent while the yield on the 10 year note was down 4 basis points at 2.37 percent.
Europe
Stocks were down Monday – investors had an opportunity to react to the Republican’s bill to repeal and replace Obamacare on Friday. House Republican leaders decided to withdraw the bill amid indications of a lack of support. The inability to advance the bill has cast doubt on U.S. President Trump’s ability to deliver on promises of increased infrastructure spending, tax cuts and deregulation. The FTSE and DAX declined 0.6 percent, the CAC slipped 0.1 percent and the SMI was 0.2 percent lower.
Bank stocks were under pressure. The financial sector benefited greatly from the Trump rally, due to hopes for deregulation in the industry. Meanwhile, healthcare stocks climbed after the failure of the Republican bill.
According to governing council member and chief economist, Peter Praet, the Eurozone economic recovery is firming, broadening and becoming more resilient, but underlying inflation has yet to signal a convincing upward trend, implying that the single currency economy still needs massive stimulus.
Software was lower after announcing the acquisition of Cumulocity GmbH for an undisclosed amount. In London, BT Group declined after it was fined £42 million over contract and regulatory breaches by its infrastructure business Openreach. Old Mutual declined after it struck a deal to sell a 24.95 percent shareholding in OM Asset Management to China’s HNA Capital US in a two-step transaction for gross cash consideration of about $446 million. Lloyds Banking Group, UBS Group, Deutsche Bank AG DBK and Société Générale retreated.
Eurozone money supply growth eased for the second straight month in February. M3 money supply rose 4.7 percent on the year in February after climbing 4.8 percent in January. March Ifo business sentiment strengthened to a 68-month high in March. The business confidence index rose to 112.3 in March from a revised 111.1 in February. This was the highest reading since July 2011.
Asia Pacific
Asian stocks advanced as investors continued to monitor oil prices. Traders also kept watch on US Capitol Asian Pacific stocks were down Monday with a stronger yen against the US dollar sending Japanese markets sharply lower, while losses remained limited across the region. The dollar hit its lowest level against the yen since late November after US President Donald Trump failed to push through a healthcare reform bill, seen as crucial to the future of his pro-growth reform agenda that includes increased infrastructure spending, tax cuts and deregulation.
The Shanghai Composite slipped 0.1 percent while the Hang Seng lost 0.7 percent. Shares were lower despite data that data showing that industrial profits surged an annual 31.5 percent in the January to February period, accelerating from a 2.3 percent gain in December.
The Nikkei dropped 1.4 percent and the Topix lost 1.3 percent as Brexit worries and policy uncertainty in the US sent the yen climbing to its highest level against the dollar since late November. Exporters Canon, Sony, Toyota Motor and Honda tumbled. Toshiba fell on a Nikkei report that its Westinghouse unit could file for bankruptcy protection on Tuesday and is seeking support from South Korea’s Korea Electric Power Corp. Financials also succumbed to heavy selling pressure, with Mitsubishi UFJ Financial, Sumitomo Mitsui Financial and Dai-ichi Life retreating. Oil explorer Inpex declined with the price of crude oil futures.
Both the S&P/ASX and All Ordinaries slipped 0.1 percent. Miners BHP Billiton, Rio Tinto and Fortescue Metals Group declined. BHP spin-off South32 also was lower despite announcing a $655 million share buyback. Gold miners Evolution Mining, Northern Star and Regis Resources rallied as gold prices hit one-month high.
The Kospi and Sensex both dropped 0.6 percent.
Looking Forward
The US releases February international trade in goods, March consumer confidence and Case-Shiller house price index.
Global Stock Markets

*Note — all releases are listed in local time.

Source: Fidelity

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