DT March 27 afternoon

Thanks Oscar and morning crew.


Half-time round-up:

Shares hit reverse this morning as a backlash against failed health reforms drove US equity futures sharply lower.

The ASX 200 retreated 23 points or 0.4% by 1pm EST to 5730 as Dow futures logged a triple-digit decline. Dow futures were recently down 111 points or 0.54% amid speculation that President Trump will struggle to get his legislative agenda through a disunited Congress, following Friday's failure to overhaul the 'Obamacare' health program. Republican House leaders pulled a revised health bill after failing to secure the support of conservative Republicans demanding tougher measures.

"The failure of the US Republican party to pass legislation repealing the universal healthcare act may come back to bite markets," Michael McCarthy, chief market strategist at CMC Markets, told CNBC. "The failure of the Obamacare repeal is not economically significant, but a hostile parliament threatens the positive outlook."

A classic 'flight to safety' saw the Australian gold sector rally 2.3% and utilities 0.6%, while the cyclical metals & mining sector fell 1.8%, IT 0.6% and financials 0.3%.

The reaction in Asia was mixed. China's Shanghai Composite rallied 0.31% and Hong Kong's Hang Seng 0.22%. Japan's Nikkei shed 1.49%.

Crude oil futures eased 13 cents or 0.27% this morning to US$47.84 a barrel. Gold futures jumped $7.70 or 0.62% to US$1,259.40 an ounce. The dollar was buying 76.2 US cents.


Well, US futures misread the mood on Capital Hill on Friday and so did I. The right wing of the Republican Party turned out to be perfectly willing to let their president twist in the wind. Trump looks friendless after that debacle. If you can't get your party to back you on something they hate as much as Obamacare, how are you going to advance on issues where there is genuine disagreement? Friday's Wall Street reaction struck me as peculiarly restrained. Today's futures suggest they've had time to mull the implications for the 'reflation trade'. Trading: scruffy session. Part-fills in NHL and TER that won't provide more than beer money unless something dramatic happens. Speculator in XST.