Friday 24 March 2017 13:00
European stocks decline
On Friday European stocks gave up some of Thursday’s gains while bonds advanced before a U.S. health-care vote that has dominated market sentiment this week.
The STOXX Europe 600 Index extended its weekly decline, with insurers and energy companies the biggest losers, as trading volumes dropped by almost a third from the previous week. The yen halted its longest rally since 2011 as U.S. lawmakers hurtled toward a vote on an amended health-care bill after a delay that fueled speculation President Donald Trump may struggle with other policies. Oil rose for the first time this week as OPEC prepared to meet for a review of production cuts.
Reflation trades sparked by Trump’s election have faltered in March as the administration remains far from delivering on pro-growth policies that boosted stocks and the dollar. The White House wrangled with House Republicans throughout Thursday to secure enough votes to pass the first major piece of legislation under the 45th president, seen as a key test of his ability to push through promised tax cuts and infrastructure spending.
Leaders from European Union countries except the U.K. meet Saturday on the 60th anniversary of the bloc’s founding Treaty of Rome to discuss the way forward after Brexit. Meanwhile, representatives from five OPEC and non-OPEC members gather for a meeting of the Joint Ministerial Monitoring Committee to oversee oil production cuts.
Asian equities rose for the 10th time in 11 days, shrugging off U.S. declines as the yen snapped an eight-day streak of gains. Banking and consumer stocks led the advance as earnings season continued in Hong Kong. The MSCI Asia Pacific Index rose 0.3 percent as of 4:15 p.m., extending a rebound that has retraced about half of Wednesday’s 1.3 percent loss.
Oil advanced 0.7 percent to $48.04 a barrel, paring its weekly loss to 2.6 percent. Gold fell 0.1 percent to $1,244.03, trimming the week’s gain to 1.2 percent.
This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management, TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: email@example.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.