* White House failure on healthcare raises worries over tax
* Dollar skids to 4-month low
* Safe havens such as gold, bonds, yen gain
* Oil dips towards $50 on doubts over output cut
(Updates to U.S. trading; changes byline, dateline, pvs LONDON)
By Saqib Iqbal Ahmed
NEW YORK, March 27 Stocks, the dollar and U.S.
long-dated Treasury yields slipped on Monday as investors
fretted that U.S. President Donald Trump's defeat over
healthcare reform foreshadowed difficulties delivering other
campaign promises, in particular fiscal stimulus.
Trump's failure to rally enough support from his own
Republican party - which controls both houses of U.S. Congress -
to repeal and replace Obamacare spurred a rush to safe-haven
assets such as gold, the Japanese yen and the
MSCI's all-country world equity index was
down 0.16 as the fall in risk appetite dominated Asian and
European stock markets.
The index was dragged down further after a lower open on
Wall Street when main U.S. stock indexes hit their lowest levels
in six weeks.
"The markets around the globe are falling as a rethinking of
the 'Trump Trade' begins to focus on reality," Peter Cardillo,
chief market economist at First Standard Financial in New York,
wrote in a note.
"While we don't expect a full-blown correction to commence
at this time, we do see rising negative sentiment replacing the
The Dow Jones Industrial Average fell 66.4 points, or
0.32 percent, to 20,530.32, the S&P 500 lost 5.56 points,
or 0.24 percent, to 2,338.42 and the Nasdaq Composite
dropped 6.13 points, or 0.11 percent, to 5,822.61.
European shares were hit by losses among miners and banks.
Europe's broad FTSEurofirst 300 index dropped 0.5
percent at 1,477.12.
The U.S. dollar fell to its lowest since November against a
basket of currencies as investors lost confidence in prospects
for a U.S. fiscal spending boost under the Trump administration.
The dollar index had risen to a 14-year high near
104.00 in early January when expectations for inflation-boosting
stimulus under the Trump presidency were at their peak. On
Monday, the index slipped below 99.0, its lowest since Nov. 11,
two days after the results of the presidential vote.
The weaker dollar helped boost gold. Spot gold was up
0.95 percent at $1,255.70 an ounce, after hitting a 1-month high
of $1,261.03 an ounce, earlier in the session.
U.S. long-dated Treasury yields fell to one-month lows on
Monday, knocked by growing uncertainty about whether the Trump
administration could deliver on its campaign promise to bolster
U.S. 30-year bond prices rose 15/32, yielding
2.976 percent. Earlier, yields slid to 2.96 percent, their
lowest since Feb. 28.
"This is just follow-through from Friday. There is
disappointment over the inability to pass the reform of
Obamacare," said Gennadiy Goldberg, interest rates strategist at
TD Securities in New York.
"There was also some concern over the time line over the tax
reform," he added.
Meanwhile, oil fell further towards $50 a barrel, pressured
by uncertainty over whether an OPEC-led production cut will be
extended beyond June in an effort to counter a glut of crude.
Brent crude was last down 14 cents, or 0.28 percent,
at $50.66 a barrel. U.S. crude was down 33 cents, or 0.69
percent, at $47.64 per barrel.
(Additional reporting by Gertrude Chavez-Dreyfuss in New York
and Yashaswini Swamynathan in Bengaluru; Editing by Nick