Asia Shares topple as US political risk looms

HEALTHCARE REFORM: The Senate Republican health care bill appeared doomed when two more GOP senators announced they would vote no in an initial, critical vote expected as soon as next week. The implosion leaves the divided GOP with its flagship legislative priority in tatters.

THE QUOTE: “The U.S. health care bill is back in the limelight,” Stephen Innes of OANDA said in a commentary. “This headline has massive implications to amend Obamacare and brings a huge element of doubt over the tax reform. Equity futures are wobbling, the dollar is selling off. Gold has picked up its allure again given the heightened political risk landscape.”

POLICY OUTLOOK: After Federal Reserve Chair Janet Yellen’s dovish comments last week on the pace of future interest rates, attention turns to meetings of the Bank of Japan and the European Central Bank. Given weak recent inflation trends, both central banks appear wary of major policy tightening moves.

ENERGY: Benchmark U.S. crude added 8 cents to $46.10 a barrel in electronic trading on the New York Mercantile Exchange. It lost 52 cents, or 1.1 percent, to $46.02 a barrel in New York. Brent crude, used to price international oils, rose 9 cents to $48.51 a barrel in London.

CURRENCIES: The dollar has been weakening as investors conclude the U.S. government is unlikely to enact a significant infrastructure spending package to boost the economy. The dollar slipped to 112.12 yen from 112.66 yen late Monday in Asia. The euro rose to $1.1536 from $1.1460.

The Washington Post

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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes