LONDON MARKETS: FTSE 100 Falls To Roughly 1-month Low As 'Trump Trade' Fades
27 März 2017 - 6:17PM
Dow Jones News
By Sara Sjolin and Victor Reklaitis, MarketWatch
Analyst: Setback for health bill in U.S. 'doesn't mean anything
good'
U.K. stocks closed with losses for a second session Monday,
driven lower in large part by resource stocks and banks, on the
back of falling commodity prices and fears the so-called Trump
trade is fading.
The FTSE 100 index dropped 0.6% to end at 7,293.50, notching its
lowest close since Feb. 28, according to FactSet data.
The decline continues on a theme from last week, when the London
index posted its biggest weekly loss since January amid concerns
over U.S. President Donald Trump's struggles with pushing through a
health-care bill. The S&P 500 index ended on Friday with its
biggest weekly loss since the U.S. election in November, and U.S.
stocks fell further on Monday
(http://www.marketwatch.com/story/dow-futures-slide-more-than-150-points-as-doubts-over-trumps-agenda-build-2017-03-27),
weighed by Republican-controlled Washington's failure to repeal and
replace Obamacare.
"Given that the global indices had been inflated by the
president's various promises, it is no surprise that the reaction
to his 'Trumpcare' failure has been so vitriolic. Investors likely
don't care one bit about the state of America's health care; they
do care, however, about what this defeat means for his ability to
push through the more market-relevant vows, namely tax reform and
infrastructure spending," said Connor Campbell, financial analyst
at Spreadex, in a note.
"It certainly doesn't mean anything good, with Trump seemingly
unable to unite the Republican Party as a lawmaking entity," he
added.
Read:These 5 charts show how Trump's health-care flop is hitting
markets
(http://www.marketwatch.com/story/these-5-charts-show-how-trumps-health-care-flop-is-hitting-markets-2017-03-27)
And see:'Trump disappointment trade is now in full swing' --
analysts on global stock selloff
(http://www.marketwatch.com/story/trump-disappointment-trade-is-now-in-full-swing-analysts-on-global-stock-selloff-2017-03-27)
Banks in particular had been invigorated by the Trump-inspired
"reflation trade," in which investors have bet on higher inflation,
rising interest rates and stronger economic growth. As the Trump
rally has faded, financials have been among the biggest decliners.
In Monday's trade, shares of Lloyds Banking Group PLC (LLOY.LN)
(LLOY.LN) fell 1.6%, while Barclays dropped 1.2%. HSBC Holdings PLC
(HSBA.LN) (HSBA.LN) (HSBA.LN) finished 0.3% lower.
A number of energy and mining stocks also declined, tracking oil
and copper prices lower. Crude was trading 0.6% lower as concerns
over rising U.S. rig counts outweighed chatter that the
Organization of the Petroleum Exporting Countries may extend its
production cuts.
Major oil company BP PLC's shares (BP.LN) (BP.LN) finished 0.9%
lower, while Royal Dutch Shell PLC (RDSB.LN) (RDSB.LN) closed down
by 0.3%.
Among miners, Glencore PLC (GLEN.LN) lost 4.4%, while BHP
Billiton PLC (BLT.LN) (BHP.AU) dropped 3.9%.
BT Group PLC (BT.A.LN) gave up 0.2% after the telecom giant was
fined GBP42 million
(http://www.marketwatch.com/story/bt-fined-42-million-pounds-over-openreach-failings-2017-03-27)
($52.5 million) over contract and regulatory breaches by its
infrastructure business Openreach.
Outside the main index in London, shares of Hurricane Energy PLC
(HUR.LN) rallied 8.8% after the oil exploration company said it has
made the "largest undeveloped discovery" of oil in U.K. waters.
(END) Dow Jones Newswires
March 27, 2017 12:02 ET (16:02 GMT)
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