Vote on Trump’s healthcare bill delayed in US - 24.3.2017

US stocks lower as vote on Trump’s bill delayed

US stocks retreated on Thursday as lawmakers postponed a vote on Trump’s healthcare bill destined to dismantle notorious Obamacare. The new bill is seen as a touchstone for Trump’s policy. If Trump fails to pass his American Health Care Act through the Congress, it may make investors doubt about his ability to fulfill his election promises on massive tax cuts and infrastructure spending. The voting on the bill was scheduled on Thursday but lawmakers delayed the vote as failed to find enough support among the Republicans to pass it (Note that the Congress is being Republican-controlled). S&P 500 index sky-rocketed 10% since the November elections mainly on Trump’s pledges of fiscal stimulus and pro-business legislation. But markets looked down on Thursday on jitters over the vote with S&P 500 posting its worst day in several months. The benchmark lost 0.11% to 2,345.96 with 7 out of 11 its major sectors posting losses. Energy sector of S&P 500 slipped 0.36%. Dow Jones industrial average slid 0.02% to 20,656.58 and Nasdaq fell 0.07% to 5,817.69. Google-parent Alphabet slid 1.19% as several companies terminated adds contracts with Youtube as the adds could appear alongside offensive videos.

European banking sector stocks up cash from ECB

European stocks advanced on Thursday as banks got 233.5bn euros of four-year loans from the ECB instead of the expected 125bn, according to Reuters poll which means banks are keen to stock up on cheap cash awaiting the prolonged rise in lending. Pan-European FTSEurofirst 300 index rose 0.78% to 1,486.95 recording its biggest daily gain in more than 20 days. MSCI’s all country world equity index added 0.13% to 447.48. STOXX EUROPE 600 gained 0.9% rebounding from the losses in three previous sessions. French CAC 40 index closed 0.8% higher in its best trading day since early February while German DAX 30 advanced 1.2%.

Asian stocks on the rise

Asian stocks were actively rising on Friday buoyed by weaker yen and positive corporate data. Japanese Nikkei rose 0.9% at 19,262.53 moving decisively away from the 6-week lows hit the day before. USDJPY added 0.5% to 111.46, up from yesterday’s four-month lows. Shares in Toshiba Corp surged 7.6% after fund Effissimo Capital Management became its largest shareholder. Bank stocks were advancing supported by broad market upturn. Topix index rose 0.9% to 1,543.92. Hong Kong stocks were on the rise awaiting corporate earnings data. Hang Seng index advanced 0.1% to 24,358.27. In China the blue-chip CSI 300 index advanced 0.8% to 3,489.60 while Shanghai Composite index added 0.6% to 3,269.45. Chinese stocks were on the rise as strong gains in infrastructure offset concerns over tightening liquidity in the national banking system.

Gold set for 2nd week of gains

Gold advanced on Friday as markets were concerned over the ability of Donald Trump to push his healthcare bill through the Congress facing the Republicans’ opposition which held the US dollar near its 7-week lows making the bullion cheaper for holders of other currencies. The spot gold was up 0.1% at $1,245.53 an ounce while it has added 1.4% so far this week. US gold futures lost 0.1% to $1,245.50.