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The late pulling of the Republican “Affordable Health Care Act” saw US equity markets pare gains on Friday as indices closed mostly lower. Although the tech-focused Nasdaq once again outperformed to finish higher, both the Dow Jones and S&P 500 closed weaker as Goldman Sachs weighed on the former while the latter suffered its worst weekly performance since Donald Trump’s November election.

Accendo Markets Analyst, Mike Van Dulken shared his thoughts on Trump’s Healthcare bill – “While it puts into doubt ease of passage for other stimulus measures it could actually allow the new government proceed more quickly with the pro-growth infrastructure spending, deregulation and tax cut trio that have fuelled a 4-month global reflation rally.”

This knock in confidence, however, has made itself felt by the markets this morning. The FTSE dropped more than 60 points, slipping to a 2 and a half week, sub-7300 low; while the DAX and CAC fared no better, falling below 12000 and 5000 respectively, shedding between 0.8% and 0.9%.

Spreadex Analyst Connor Campbell commented – “It wasn’t just the European indices that suffered. The normally dominant dollar dropped like a stone after the bell, falling half a percent against the pound and 0.7% against the euro. That leaves cable at its highest point in over a month, while the euro-dollar is at its best level since last November.”

In focus this morning will be any fallout from the 11th hour withdrawal of the US Healthcare bill on Friday night, putting a 4-month global Trump trade rally into question, as well as the run-up to Wednesday’s triggering of Article 50 to officially kick off the UK’s divorce proceedings with the EU.

On the data front, German IFO Surveys are seen largely flat with Business Climate clinging to 3yr highs of 111, while Eurozone M3 Money Supply holds firm at 4.9%.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Michael Morton

Michael Morton

Michael has worked within the Financial Industry for more than 20 years. Starting out as a financial analyst, he has extensive experience working with fund management groups and brokerages.

With an interest in Stocks and Shares, Funds, ETFs and Commodities, his investment focus is medium to long term gains, with the objective of financial security on retirement, and building wealth for his young children for their adult life. His broker of choice is Hargreaves Lansdown.

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