Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, the European markets negotiated with slight valuations. The focus will be on the issue of Donald Trump’s political-economic program and the publication of PMI economic indicators for the European economy. After high expectations about the vote on the health care in the US and its postponement, the most recent news reports that President Donald Trump gives one last chance to the Republican House in the House of Representatives. The President said that if a new legislation on the health system is not passed today in the House of Representatives, it is prepared to leave the Obamacare program unchanged and move on to fiscal reform. With the Democrats aiming to prevent repeal of Obamacare, if at least 22 Republicans vote against the bill, the diploma will not get the 216 grants it needs to pass. It should be remembered that it is not only the potential implications of the new legislation to abolish and replace the current health program, but what this means for the implementation of other announced measures, such as the long-awaited tax cuts. These can only be approved after the approval of health legislation, which implies that any delay can condition investors’ expectations.
The US market reversed the positive trend it experienced for much of the session. The postponement of the health system bill was postponed due to the Republican Party’s difficulty in securing the necessary support for its approval, especially due to the congressional members of the more conservative wing of the party. The vote on the repeal and replacement of Obama’s (Obamacare) reform will not take place before Monday. The Dow Jones ended lower for the sixth consecutive session, the highest since the 7 loss sessions that ended Nov. 4. The financial sector led the gains for much of the session, after this week banks were pressured by falling sovereign bond yields. In terms of economic indicators, the number of weekly applications for unemployment benefits increased by 15 000 to 258 000, above the expected 240 000. However, the number of weekly orders remains below 300,000 for 80 weeks, the longest since 1970. With regard to the real estate market, sales of new homes increased from 6.10% in February to 592,000, the highest of the last 7 Months. Estimates pointed to the 564,000 houses sold. One should notice the intervention of Janet Yellen at a conference organized by the Fed, although her speech did not mention monetary policy. Another intervention by the President of the Central Bank in Washington D.C. on the recent decision to raise interest rates, as well as the next steps in monetary policy, is scheduled for today. In addition, St. Louis Fed President James Bullard will also speak at around 4:30 p.m.
Asian stock markets ended in different directions due to the postponement of the health reform bill vote in the US. In Japan, the Nikkei closed higher, favored by the behavior of the Yen against the Dollar.