LONDON — Shockwaves from President Donald Trump’s failure to overhaul the Affordable Care Act, also known as Obamacare, hit the markets on Monday.
Investors were concerned that President Trump won’t be able to cut taxes and increase spending to inflate the US economy as a result of the healthcare debacle, weakening the dollar and reducing prospects for global economic growth.
The UK’s FTSE traded 0.85% lower as of 8:24 a.m. UK time (3:24 a.m. EST), while Germany’s DAX fell 0.83% and the Euro Stoxx 50, a benchmark of leading European companies, was down 0.73% to 3,418.
“The FTSE is hindered by GBP strength (due to USD weakness) weighing on its 70% of internationally-generated profits as well as a drop in commodity prices (base metals Oil) as fresh risk aversion kicks in; a double whammy blow for Miners and Oil majors,” Michael van Dulken, head of research at Accendo Markets, said in an email.
Here’s the chart:
And here’s how the most traded stocks started the day. Glencore, which is sensitive to oil and commodities prices, traded more than 3% lower:
Oil took a knock on concerns the US is ramping up production.
“Crude Oil is starting the week on the back foot as the Baker Hughes Rig Count on Friday recorded its 10th weekly increase, adding to concerns that rising US production will offset OPEC’s production cuts, given further impetus as rumours of an extension to the group’s cuts and a weaker US dollar are failing to buoy prices,” van Dulken said.
And here’s the chart:
More from Business Insider UK:
- 10 things you need to know in markets today
- 10 things in tech you need to know today (AAPL, GOOG, SNAP)
- It looks like ‘The Walking Dead’ season 7 finale is setting up a big moment from the comics, but there may be a catch
- 5 details you may have missed on Sunday’s episode of ‘The Walking Dead’
- The Trump era is ushering in a ‘more is more’ design renaissance in America
Business Insider Emails & Alerts
Site highlights each day to your inbox.