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Markets hit by healthcare flop

Monday, March 27, 2017 - 01:40

European shares fall, hit by losses among miners and banks after U.S. President Donald Trump's failure to pass his healthcare bill raised worries over the his ability to deliver on fiscal stimulus plans. Laura Frykberg reports on how investors are viewing both Trump and Britain's plan to trigger Article 50 on Wednesday.

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Repeal and replace Obamacare - words heard over and over during Donald Trump's election campaign. His failure to turn them into ACTION - is not only a blow to his administration. Markets in Asia and across the Atlantic have also taken the hit. The pan-European STOXX 600 index fell 0.7 percent, while the UK FTSE dropped even further. Another loser, the normally resilient U.S. dollar. SOUNDBITE (English) IG SENIOR ANALYST, CHRIS BEAUCHAMP "You're seeing the euro rising on the back of that weaker dollar. The expectation that a lot of the tax cuts and economic growth in the U.S. won't be coming through. So people are selling the dollar and moving to other currencies, pushing the euro higher." Markets are now bracing for another potentially turbulent week. The UK government is triggering Article 50 - the process of leaving the European Union. Although its exact impact - may all depend on exactly how the continent responds. SOUNDBITE (English) IG SENIOR ANALYST, CHRIS BEAUCHAMP "Do you get the Juncker approach? The hardline Brexit approach, that says everything is off the table we have to start again from scratch. Or do you get the slightly more conciliatory approach from the European Council, and if that comes through, it says we can work with the UK, then we might see a calmer reaction." There has been a winner on the back of Trump's failed bill though. The British pound. The currency has taken a battering since the Brexit vote. On Monday, it surged almost 1 percent to a seven-week high against the dollar in morning trade.

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Markets hit by healthcare flop

Monday, March 27, 2017 - 01:40