On 23 March, 2017 – Stock indices in Asia and Europe advanced

US stocks tumbled in late trading after a Congressional vote was postponed.
United States
Stocks edged lower Thursday after lawmakers postponed a vote on a healthcare reform bill which was seen as President Donald Trump’s first policy test. The Dow Jones industrials were virtually unchanged (down 4.72 points) while both the S&P and Nasdaq slipped 0.1 percent.
The US House of Representatives canceled Thursday’s vote on the healthcare plan casting doubts on Trump’s ability to deliver other parts of his agenda that need help from the Republican-controlled Congress. Many investors and analysts have said the vote is a key test of whether Trump will be able to push through potential policy changes such as tax cuts, fiscal stimulus and deregulation.
Initial jobless claims in the week ended March 18th climbed to 258,000, an increase of 15,000 from the previous week’s revised level of 243,000. The data were subject to annual revisions. February new home sales jumped to their highest level in seven months. The report said new home sales increased 6.1 percent to an annual rate of 592,000 after surging up by 5.3 percent to a revised 558,000 in January.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was down US$1.55 to US$1,247.50. Copper futures were up 0.8 percent to US$2.65. WTI spot crude was down 36 US cents to US$47.68. Dated Brent spot crude was down 10 US cents to US$50.54. The US dollar was up against the euro, Swiss franc and the Canadian and Australian dollars. The currency declined against the yen and pound. The Dollar Index was virtually unchanged. The yields on both the US Treasury 30 year bond and the 10 year note were up 1 basis point to 3.03 percent and 2.41 percent respectively.
Europe
Stock indices gained Thursday even though investors were cautious before the crucial vote on US healthcare reform in the House of Representatives. After a weak start, the markets inched into positive territory later in the morning and advanced further in the afternoon. The afternoon gains coincided with an upward move in US markets into positive territory. Investors continued to monitor the latest developments in London after yesterday’s terror attack around the Houses of Parliament. However, the attack has had little impact on the markets. The FTSE was up 0.2 percent, the CAC gained 0.8 percent, the DAX added 1.1 percent and the SMI was 0.7 percent higher.
According to the European Central Bank, the euro area economic recovery is steadily firming and the trend is likely to continue with growth firming and broadening going ahead. “Incoming data, notably survey results, have increased the Governing Council’s confidence that the ongoing economic expansion will continue to firm and broaden.”
BASF finished higher after Stahl agreed to acquire its leather chemicals business. IG Group sank after the online trading company reported a 3.8 percent drop in quarterly revenue. Kingfisher retreated a day after warning of an uncertain economic outlook because of Brexit and the French presidential elections. Tesco advanced after reportedly removing Heineken beers and ciders from its shelves over a Brexit row with manufacturers. Next jumped after the fashion retailer maintained its profit forecast — it had reported its first decline in annual profits for eight years. M&S also advanced.
UK retail sales increased for the first time in four months in February despite high inflation squeezing purchasing power of consumers. February retail sales volumes were up a monthly 1.4 percent, reversing a 0.5 percent drop in January.
Asia Pacific
Asian stocks advanced as investors continued to monitor oil prices. Traders also kept watch on US Capitol Hill to see whether President Donald Trump would get the Republican health care bill through the House of Representatives. Markets largely shrugged off news of a terrorist attack in London on Wednesday.
The Shanghai Composite edged up 0.1 percent despite investor worries over tight liquidity in the interbank market and increased regulatory scrutiny weighing heavily on B shares. The Hang Seng was virtually unchanged (up 7.29 points).
The Nikkei was up 0.2 percent while the Topix was virtually unchanged (up 0.21 point). A slightly higher yen helped offset news that the head of a Japanese school at the heart of a political scandal received a donation of ¥1 million from Prime Minister Shinzo Abe’s wife in 2015. Banking and brokerage stocks were mixed after falling heavily in early trade. Exporters Honda Motor, Hitachi and Mazda Motor rose as the US dollar inched up from four-month lows against the yen.
Both the S&P/ASX and All Ordinaries added 0.4 percent. Mining stocks ended flat to higher. BHP Billiton, Woodside Petroleum, Santos, Origin Energy and Oil Search advanced. The big four banks ended narrowly mixed. Gold miners Northern Star and Evolution declined with gold prices. Sigma Pharmaceutical gained after releasing its 2016 results.
The Kospi was up 0.2 percent. The Sensex was 0.6 percent higher.
Looking Forward
March flash PMIs will be released for Japan, the Eurozone, Germany, France and the US. Canada reports February consumer prices. In the US, February durable goods orders will be released.
Global Stock Markets

*Note — all releases are listed in local time.

Source: Fidelity

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