Stocks had biggest one-day loss yesterday, Britain’s plan to exit from European Union, Oil prices hit four-month lows
March 22, 2017
Stocks had their biggest one-day loss yesterday, and the effect was felt around the world. At the start of trading today, they are slipping lower again. Uncertainty around the ability for Congress to reform healthcare and tax policy and deregulate has taken center stage. Investors don’t love uncertainty, but Bonds certainly do, and right now it is not clear what plans, if any, will get through to passage.
Meanwhile, Britain’s plan to pull the official trigger on its exit from the European Union March 29 has financial organizations making plans of their own. Goldman Sachs and Morgan Stanley are the first to announce they are seeking alternative locations for staff and operations currently housed in London. The city’s reign as the financial center of Europe is likely coming to an end, and a successor city will be crowned. But where?
Finally, oil prices hit four-month lows after recent data showed U.S. production is much higher than expected. The ramped up production only adds fuel to the fire of a global oil supply that is overstocked and undervalued in the eyes of investors (consumers do see lower prices at the pump, which is a benefit).