Noted and Notable: TrumpCare is a No-go, Fed Jawboning (week 2), and EU/ Brexit Panic Begins
Markets across the world are sliding as investors reassess Donald Trump's prospects following bill failure, oil producers open to extending production cut, and it's a big week for Brexit. precious Metals Just Keep on Keeping on.
- Trump's Bil to overhaul Obamacare failed on Friday
- Tax Cuts and other fiscal plans are hog-tied by the failure of Trump's Healthcare bill
- Fed Speakers will swarm the airwaves this week with unprecedented jawboning
- Brexit is front and center in Europe as Article 50 will likely be triggered
- OPEC voted to continue their output curbs 'real and imagined'
Gold is Up, Stocks are Down, and the USD ain't Sticking Around
Markets slump, for any of a 1000 reasons.
The failure of the health-care bill in Congress on Friday is putting pressure on markets as investors reassess the post-Trump election rally. Overnight, the MSCI Asia Pacific Index dropped 0.3 percent, while Japan's Topix index closed 1.3 percent lower as the dollar weakened against the yen. In Europe, the Stoxx 600 Index was down 0.7 percent at 5:10 a.m. Eastern Time, with mining stocks leading the slide. U.S. stock futures were also losing ground. The Bloomberg Dollar Spot Index sank below its 200-day moving average to reach its lowest level since Nov. 10.
Gold Steps up Again.
interactive chart HERE
No Tax Reform= Trump- Ryan alliance now in jeopardy
The failure of the health-care bill is seen by markets as a sign that President Donald Trump may have difficulty in passing the tax cuts promised by his administration. The president criticized Republicans in the House for defeat of the health-care bill in a posting on Twitter yesterday. House Speaker Paul Ryan warned that the failure of the bill "does make tax reform more difficult."
Ryan's alliance with Trump is based on Tax reform. Ryan supports Trump on immigration > Healthcare is repealed> Tax reform next.Flock of Fed speakers
If you thought last week was a busy one for Fed speakers, you ain't seen nothing yet. No fewer than 14 Fed speeches are due this week, with tomorrow's address by Chair Janet Yellen likely to be the highlight. With Treasury bears feeling the squeeze, any further talk of Fed balance sheet adjustment could provide some relief. Here's what you should read today
Brexit or Get off the Pot week
On Wednesday U.K. Prime Minister Theresa May will write to EU President Donald Tusk to officially trigger Article 50 of the Lisbon Treaty, which will start the two-year countdown to Britain leaving the European Union. There are already signs that the negotiating process may be a difficult one, with the Bank of England this morning saying Brexit remains one of the key risks to the U.K. economy.
Oil production is curbed, we promise
At a meeting in Kuwait over the weekend oil producers said they would consider extending their output curbs beyond the current end-of-June deadline. The existing agreement has a compliance rate of 94 percent, according to Kuwait's Oil Minister Issam Almarzooq. A barrel of West Texas Intermediate for May delivery was trading 33 cents lower at $47.64 as of 5:31 a.m.
Read more by Soren K.Group
