NS: Global shares drop on jitters over Trump reform agenda
SEOUL, South Korea â€” Global stock markets fell Wednesday, with Tokyo tumbling more than 2 percent, as jitters over President Donald Trumpâ€™s ability to deliver on his reform agenda darkened sentiment. Germanâ€™s DAX lost 0.7 percent and the CAC 40 in France fell 0.8 percent, while futures showed U.S. stocks were set to open lower.
KEEPING SCORE: Britainâ€™s FTSE 100 slid 0.9 percent to 7,309.15. Franceâ€™s CAC 40 dropped 0.8 percent to 4,964.41 and Germanyâ€™s DAX fell 0.7 percent to 11,880.78. Auguring a downbeat start for Wall Street, S&P futures fell 0.2 percent while Dow futures also lost 0.3 percent.
ASIAâ€™S DAY: Japanâ€™s Nikkei 225 stock index fell 2.1 percent to close at 19,041.38 and Hong Kongâ€™s Hang Seng Index dropped 1.1 percent to 24,320.41. Australiaâ€™s S&P ASX 200 lost 1.6 percent to 5,684.50. South Koreaâ€™s Kospi lost 0.5 percent to 2,168.30 and the Shanghai Composite index fell 0.5 percent to 3,245.22.
HEALTH CARE AGENDA: The U.S. House of Representatives is scheduled to vote Thursday on the Republican-backed American Health Care Act, but itâ€™s not clear if the House or the Senate will approve the bill.
ANALYSTâ€™S VIEWPOINT: â€śAs this market correction extends, investors may now get an answer as to just how much current stock valuations are actually dependent on the assumed boost from the Trump administrationâ€™s plans for fiscal stimulus, or whether recent gains have been mainly about improvements already evident in the U.S. and other economies,â€ť Ric Spooner, chief market analyst for CMC Markets, said in a commentary.
JAPAN TRADE: Japanese shares sank after the U.S. dollar weakened against the yen, potentially hurting earnings of exporters. The governmentâ€™s report that Japanâ€™s trade surplus more than doubled in February from a year earlier as exports to Asia surged failed to make up for the yenâ€™s gains, which inevitably drive shares lower.
ENERGY: Benchmark U.S. crude lost 41 cents to $47.83 a barrel in electronic trading on the New York Mercantile Exchange. It fell 67 cents to $48.24 a barrel on Tuesday. Brent crude, used to price international oils, fell 85 cents to $50.11 a barrel.
CURRENCIES: The dollar slipped to 111.25 yen from 111.72 yen. The euro weakened to $1.0780 from $1.0810.