According to online reports Global equities lost steam, with stock indices – save for the CSI 300 — within our coverage universe closing in the red. We highlight the factors that played host to this week’s performance: geopolitical tension, government policy, currency swing, and partly, a fall in oil prices.
Activities opened on Wall Street with investors being reluctant to make big bets without major economic or corporate news amid declining oil prices. Consequently, financials stocks crumbled with rising concerns about the likelihood of the immediacy of President Donald Trump’s policies as lot of them already got mired in the legislative process. Midweek, stocks pared previous losses, on the back of gains in tech shares, albeit the impact was subdued by a 7% fall in Nike shares. The delay in a closely watched health-care vote – which raised questions about President Trump’s ability to win passage of its ambitious legislative agenda – had the biggest impact on investor appetite, as its delay spurred cautious trading. Overall, the DJIA and S&P 500 had declined by 1.07% w/w and 1.10% w/w at the time of writing. European investors reacted to (1) the Group of 20 meeting among finance officials that stoked tensions about global trade, (2) losses posted by French equities following a poll showing respondents favouring center-right politician Emmanuel Macron in France’s first presidential debate, (3) concerns about whether the Trump administration can soon deliver the fiscal and regulatory changes needed to support the “Trump trade” that has lifted global equities in recent months, and (4) the delayed health-care-bill vote in the U.S. It was not surprising to see the FTSE 100 (-1.24% w/w) and Euro Stoxx 50 (-0.19% w/w) closing lower than respective last week’s levels, despite yesterday’s upbeat performance on upbeat session in the U.S. ahead of the health-care bill.It is expected that the market will continue on the same note, because there are no upbeat economy data expected next week.And the health care debate has not impacted the markets for a positive upbeat in the US stock markets.the US markets seems to be very cautious since the current regime of Donald Trump, because of his policies that has not given investors green light in the scheme of things.
Asian markets lacked direction into the week, as investors digested news from the G-20 meeting over the weekend amid lacklustre performance on Wall Street. Markets in the region were most reactive to the overnight declines in U.S. financial markets following investors’ re-evaluation of the “Trump trade” optimism, and in addition to an expected vote on U.S. health care. The Japanese Nikkei 225 – which particularly grappled with a stronger yen – had lost 1.33% w/w at the time of writing, while the Chinese CSI 300 (+1.33% w/w) surprisingly closed higher.
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