3 Market News to start your trading week – 27/03/17 March 27, 2017

This trading week may prove to be exciting to many due to various events which happened over the weekend and also the upcoming events this week. The following 3 pieces of news may have the most impact to the global and regional markets.
1) Trump’s healthcare bill failed to pass through Congress
With the collapse of his healthcare bill last Friday, it showed some signal that President Donald Trump is starting to suffer certain political setbacks. This is in spite of the Congress being controlled by his own party members, the Republicans. This incident casted doubts on his other potential policies which he promised to implement, such as those on tax reduction.
Due to this uncertainty, the market reacted negatively as the ‘Trump Trade’ deflates. This morning, the Dow futures fell approximately 150 points to a six week low, Asian markets such as Shanghai Composite index, SSE, and Japan’s Nikkei 225 saw decreases too.
Growing doubts on President Donald Trump’s pro-growth economic agenda, also prompted investors to dump risky assets and rush to safe havens, causing gold prices to rally to a four-week high today.
Investors ought to keep a keen eye on this, as this could be a spark to something bigger. With much anticipation to Trump’s potential reforms on tax, any disruption to it might cause hysteria on certain segments of the market. This is especially the concern as markets have rose significantly since Trump won the election last November.
2) OPEC, non-OPEC to look at extending oil-output cut by six months
Yesterday, a joint committee of ministers from OPEC and non-OPEC oil producers agreed to review in April on whether a global pact to limit supplies should be extended by six months, which have rekindled hope that oil supply may remain supressed.
Thus, though oil prices started the week lower today, it did not break the weakest levels since November 2016 raising hopes that oil price might remain stable in the short term.
Going forward, the decision in April would be crucial in the oil supply for the rest of the year. However, a wildcard still remain. The uncertainty around US oil supply and Trump’s America First Energy initiative might have a significant impact to the oil and gas industry. Should oil supply remain supressed, oil prices may remain stable or show positive signals, which would be positive for the supressed offshore and marine sector.
3) Theresa May has finally revealed that she will trigger Article 50 on March 29
Should Article 50 be triggered by the UK, Britain’s complex negotiations to exit the EU will finally be able to take place. However, the road ahead would be unclear, as no state has left the EU before, and the rules for exit as stated in Article 50 of the Treaty of Lisbon are brief.
Though in theory it will start a 2 year of talks for separation, analysts expects that the process may take longer and that the time scale might be extended.
With that in mind, much uncertainty could be expected especially with regards to trade deals, and whether the divorce would be peaceful, or a “hard Brexit” may occur. Investors can take a cautious approach even though it is expected that there may not be any drastic impacts in the near term, as most of the anticipated changes might have been priced-in.
Should you want to know more information on the markets or what to look out for, you can speak to a Dealer at a Phillip Investor Centre near you.
Disclaimer
These commentaries are intended for general circulation. It does not have regard to the specific investment objectives, financial situation and particular needs of any person who may receive this document. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. Opinions expressed in these commentaries are subject tIceberg Research strikes again with another Short Report o change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of the units and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. Investors may wish to seek advice from a financial adviser before investing. In the event that investors choose not to seek advice from a financial adviser, they should consider whether the investment is suitable for them.
The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries.
Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned.
About the author

Mr Siew Wei En Samuel
Equity Dealer
Mr Siew Wei En Samuel - Equity Dealer, POEMS Dealing (Toa Payoh), Phillip Securities Pte Ltd Mr. Samuel Siew currently provides dealing services to over 10,000 trading accounts and is part of the POEMS Dealing, the core in-house dealing department of Phillip Securities Pte Ltd. Apart from his Dealing role, he also gives training seminars to further enrich his clients’ financial knowledge. Samuel often conducts Market Outlook/ Educational/ Product seminars monthly for clients and Tertiary Institutions in both English and Chinese. He believes in value investing, and focuses on stocks with good company fundamentals, as well as dividend paying stocks. Samuel regularly provides market commentary for Lianhe Zaobao, Capital 95.8FM and 938 Live FM. Samuel holds a Bachelor of Degree of Commerce with a Double Major in Marketing & Finance from Curtin University.