American Round-Up – 21/03/2017 – by Arjun Lakhanpal

March 22, 2017 by

In European Equity Markets stocks ended lower on Tuesday, reversing earlier gains as jitters about U.S. President Donald Trump’s ability to push through reforms overshadowed soothing news from the French presidential debate. The pan-European STOXX 600 index ended down 0.5 percent. German heavyweight bank Deutsche Bank was a top gainer, 4.3 percent above its theoretical ex-rights price as the subscription period for its 8 billion euro capital hike began. French banks, seen as a bellwether of election developments, were among the biggest gainers in the sector, with BNP Paribas , Societe Generale and Credit Agricole up between 0.3 and 1.6 percent.

In Currency Markets the dollar fell to a three-week low against the Japanese yen on Tuesday as concerns about how quickly the Trump administration can implement pro-growth policies pushed stocks lower and kindled safe-haven demand for the Japanese currency. The dollar was down 0.68 percent at 111.79 yen. The euro rose to its highest since Feb 2, and was last up 0.7 percent to $1.0812. Sterling jumped almost 1 percent to its highest level in three weeks on Tuesday, after data showed British inflation in February above the Bank of England’s 2 percent target for the first time since the end of 2013. This was seen as boosting chances for a rate hike from the BoE.

In Commodities Markets  oil prices on Tuesday fell close to its lowest in a week as the market discounted the latest talk by OPEC that it would extend output cuts beyond June.  Brent futures for May delivery were down 1 percent, at $51.09 a barrel. U.S. West Texas Intermediate crude was down 1.4 percent, at $47.54 per barrel on the last day the April contract is the front-month, its lowest level since March 14. Spot gold was down 0.1 percent at $1,231.89 an ounce. Silver was down 0.1 percent at $17.39, while platinum was 0.4 percent lower at $963.60. Palladium was up 0.4 percent at $782.35, having earlier touched a three-week high of $785.20 an ounce.

In US Equity Markets  stocks reversed course to trade lower in late morning on Tuesday, pressured by a fall in bank shares. The Dow Jones Industrial Average was down 0.61 percent, at 20,778.62, the S&P 500 was down 0.63 percent, at 2,358.37. The Nasdaq Composite was down 0.75 percent, at 5,857.04. The financial index led the laggards on the S&P 500 with a 0.72 percent fall. Bank of America was down 3.9 percent, weighing the most on the S&P 500, while Goldman Sachs , which was down 2.2 percent, pulled the Dow lower. Lennar fell 2.7 percent after the second-largest U.S. homebuilder reported a decrease in quarterly gross margin. Apple rose to an all-time high of $142.40 after the company unveiled a new version of its iPad tablet.

In Bond Markets U.S. Treasury yields rose on Tuesday in sympathy with weakness in European government bonds, after data showed that British inflation jumped last month and as concerns about the French election result eased. Benchmark 10-year U.S. Treasuries were last down 5/32 in price to yield 2.49 percent, up from 2.47 percent late zon Monday. British 10-year government bond yields jumped to an almost five-week high, helping to weaken German and U.S. government debt.