Yesterday, U.S. President Donald Trump failed to close the deal with Republican lawmakers on how to dismantle Obamacare. The vote was seen by financial markets as a crucial test of Trump’s ability to work with Congress to deliver on his agenda.
The setback on what is supposed to be his first legislative win, made investors doubt on whether Trump is able to deliver on other pro-growth policies like infrastructure spending and tax cuts.
After the delay, the U.S. markets edged lower, Dow Jones closed down at 4.72 points and the S&P 500 closed down at 2.49 points.
In Europe, equity markets gained as banks took up 233.5 billion euros of four-year loans in the European Central Bank’s last targeted longer-term refinancing operation. This was well above the 125 billion euros expected in a Reuters poll. That suggested banks are keen to stock up on cheap cash in anticipation of a continued rise in lending.