European stock indices are falling, reflecting a fall in US stock index futures. On both sides of the ocean, investors are worried about the inability of the new US administration to conduct legislative acts in Congress. The decision to withdraw health legislative initiatives on Friday raised doubts about the ability of US President Donald Trump to achieve tax cuts and an increase in infrastructure spending. Among the worst affected was the financial sector. Today, Lloyds Banking Group PLC fell -2.4%, Barclays fell -2.4% and HSBC Holdings PLC dropped -0.9%. The key US dollar index on Monday fell to its lowest level in more than four months, also being under pressure after the decision to abolish the vote of changes to Obamacare in Congress. The ICE dollar index, which measures currencies against a basket of six major currencies, fell 0.6%. An additional tension in Europe is created by the application for leaving the UK from the EU scheduled for March 29. From this day, London and Brussels will have two years to negotiate the conditions for the exit of Britain. It is expected that, in addition to negotiations with the EU, Britain will hold general discussions about concluding bilateral partnership agreements with non-EU countries. Oil prices have resumed their decline, amid growing growth in the number of active drilling rigs in the United States and uncertainty about OPEC’s plans to cut production. A number of ministers from the Organization of Petroleum Exporting Countries and other producers met in Kuwait to consider extending the contract to reduce oil production. The current contract expires at the end of June. During the meeting, they agreed to discuss the extension of the transaction in the near future, which indicates the lack of a unified position among oil producers. While many OPEC representatives are calling for an extension of the agreement, Russia’s position was less categorical. The Minister of Energy of the Russian Federation, Alexander Novak, said on Sunday that it is too early to say whether the terms of the agreement will be revised. At the same time, oil companies in the United States continue to increase production, adding 21 active drilling rigs during the past week. Energy and mining companies are also declining, tracking the dynamics of oil and copper prices. Major oil companies BP PLC and Royal Dutch Shell PLC fell by -1% and -1.1%, respectively. Shares of the mining company Glencore PLC lost -3%, while BHP Billiton PLC shares fell -2.1%. A month before the start of the first ballot in the French presidential election, about 43% of voters did not make a choice. Such survey data was presented by the company Odoxa. The leaders of the race are still Macron and Le Pen. Published economic data in Germany demonstrated the continued steady growth of the country’s economy, but even this news could not overcome the negative coming from the US.
Review prepared by Fort Financial Services analytical department. Follow our publications!