(Kitco News) - Asian and European stock markets were mostly lower overnight. U.S. stock indexes are pointed toward solidly lower openings when the New York day session begins. Gold prices are higher and hit a four-week high in overnight trading. Prices are in a fledgling, steep uptrend on the daily bar chart.
The marketplace is still reacting to the news late Friday that the U.S. House of Representatives Republicans pulled their bill to repeal and replace Obamacare. That was a major defeat for the first foray into new legislation from the Trump Administration, and it now calls into question what Trump can actually get accomplished regarding his pro-business campaign promises. That's bearish for world stock markets and bullish for safe-haven assets like gold and U.S. Treasuries. Most agree the "Trump rally" that began in many world stock markets in early November has now petered out.
In overnight news, the closely watched German Ifo business climate index rose to 112.3 in March, which was above expectations of 111.0. The March number was the highest in nearly six years.
The key outside markets on Monday morning see the U.S. dollar index sharply lower and hitting a 4.5-month low overnight. The greenback bears have downside technical momentum as prices are in a steep downtrend on the daily bar chart. Meantime, Nymex crude oil prices are lower and hovering not far above last week's four-month low. Growing world oil supplies, especially ramped up U.S. shale-oil production, are keeping crude oil prices tamped down.
U.S. economic data due for release Monday includes the Texas manufacturing outlook survey.
By Jim Wyckoff, contributing to Kitco News; [email protected]
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