Global stocks retreat in favor of safe-haven assets due to shock, "Obama Care"

Global stocks retreat in favor of safe-haven assets due to shock, "Obama Care"



2017/03/27 | 14:41
(Encyclopedia of this Day News | Iraq News ) - Live: Global stock markets saw notable losses during trading on Monday, with the direction of investors for the acquisition of safe - haven assets amid concerns related to the US economy, and the conflict between Congress and President Donald Trump.
The US administration has decided to postpone reforms for the health care program known as "Obama Care" after intercepting members of Congress on the amendments requested by President Trump.

Investors fear the possibility of the inability of the US president to pass economic reforms that he had pledged repeatedly, including a reduction in taxes on companies and individuals, increased spending on infrastructure, to stimulate the world's largest economy.

Global stock losses

In Asia, stock markets saw notable losses as investors worried about developments in the United States, as well as the trend to buy safe havens.

Japan's Nikkei index fell 1.4% to close at 18985 points, and the broader Topix index fell by 1.2% to 1524 points.

The Shanghai Composite Index record in China down by 0.08% to 3266 points, and the Hang Seng in Hong Kong fell by about 1%.

In Europe, stock indexes began today's trading session on the decline, with the suffering of the shares of the banking sector of the notable losses due to concerns about the US developments.

The dropped Stoxx European 600 rose 0.5% to 374 points, at 10:30 GMT, and the British FTSE index fell by 0.8% to 7279 points.

The French CAC index fell by about 0.3% to 5003 points, and the German DAX index lost 0.8% of its value to reach 11964 points.

The dollar fell

On the currency front, the US dollar suffered strong losses against other major currencies; dropping to the lowest level in four months against the Japanese yen.

The US currency fell against the euro by 0.6% to $ 1.0866 at 10:29 GMT, also fell against the yen by about 0.8% to 110.3 yen.

The dollar fell against the pound by 0.9% to $ 1.2586, and fell against the Swiss franc by about 0.7% to 0.9848 francs.

Safe-haven assets to recover

And increased investor demand for safe havens such as the yen and the franc, gold and government bonds, as they seek to avoid risky assets amid a state of uncertainty hanging over the situation in the United States.

The price of gold futures rose 0.7% to $ 1260.3 an ounce at 10:17 am GMT.

And increased the immediate delivery of the precious metal price of about 1.1% to $ 1256.8.

The record price of silver rose by 1.08% to $ 17.94 an ounce, as the price of platinum increased by 1.5% to $ 979.3 an ounce.

On the side of a parallel, government bonds rose in the euro zone and the United States, the yield to decline significantly, with investors trend for safe assets preference.

The yield on US bonds fell for 10 years to 2.35%, the lowest level in a month.

The yield on the German and French government bonds, near the lowest level in 3 weeks also fell.

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