Market Snapshot – Obamacare Repeal Vote in Focus

Trump’s Healthcare Vote in the Spotlight

The U.S administration worked on garnering the necessary support through the day with news of progress providing support for the Dollar, though there’s plenty riding on the administration’s ability to be able to smoothly pass the bill through the house.

The markets are taking Trump’s ability to pass through the Affordable Care Act as a barometer on the administration’s ability to pass through tax reforms, deregulation and a $1tn fiscal stimulus package.

Trump will meet the members of the freedom Caucus at 11:30 ET. Stocks should rally if the new healthcare bill is passed into law. If the vote fails then look for further downside pressure.

Global Stocks and US Futures Mixed Ahead of Obamacare Vote

European stock markets are narrowly mixed, with FTSE 100 underperforming as Sterling remains buoyed. The wider and less currency sensitive FTSE 250 is up on the session, and the DAX is higher as global stock markets continue to stabilize.

U.S. markets started to come back late in the afternoon and Asian markets closed mostly in positive territory, with the Nikkei up 0.23% at the close, while the ASX managed 0.41% and the Hang Seng 0.03%. Investors remain cautious on Trump’s policies, however and gains are muted compared to recent losses.

US futures are mixed with S&P 500 rise 0.05%, Dow Jones dropped 0.10% and Nasdaq 100 falls 0.22%.

Oil Prices Turn Lower on Oversupply

The U.S. supply glut continues to be the dominant force in the market, even overcoming OPEC’s attempt to control the world oil supply through cuts in production for OPEC and non-OPEC members.

The market is at risk of dropping further due to increasing U.S. output and a lack of compliance by some producers who said they would cut production.

Although OPEC may talk about extending the production cuts beyond its original deadline, this is not likely to occur unless OPEC and non-OPEC members agree to the proposal. This is unlikely, however, because a few countries haven’t been compliant with the first agreement.

Crude oil is trading at $47.73 down 0.65%, Brent oil is trading at $50.41 down 0.42%.

UK Retail Sales Shook off Brexit Fears, Pound Rises

UK February retail sales beat expectations, rising 1.7% month over month and by 3.7%, up on the respective median forecasts for 0.4% and 2.6% growth. A rebound had been expected following two consecutive months of sub-par sales, though the magnitude was even greater than foreseen. January data were revised lower, however, to -0.5% month over month from -0.3% month over month initially reported, and to 1.0% year over year growth from 1.5% year over year. Pound rises above 1.25 to trade at 1.2519 +0.27%.