Baku. 27 March. REPORT.AZ/ US stock indices including the world stock indices and dollar exchange rate expected to decline sharply today, on March 27.
Report informs, the reason is president Donald Trump’s failure to repeal Barack Obama’s Affordable Care. Although the bill was largely authored by House Speaker Paul Ryan, representatives from the right wing of the GOP including the House Freedom Caucus vigorously opposed the bill.The incident has shocked finan cial markets. The global financial market participants began to doubt Trump’s plans to raise tax reforms and fiscal costs. As a result, the US dollar started to fall against almost all world currencies this morning. Thus, USD/EUR increased by 0,55% and reached 1,0860, USD/GBP rose by 0,57% and made 1,2545, JPY/USD in turn declined by 1,07% and amounted to 110,20.
Notably, growth in the US stock indexes by 10% as a result of pre-election platform of new US president about increase in fiscal spending and tax reforms will definitely make US stock indices to fall.
Notably, at the moment, futures contracts dropped by 0.8% or 160 points in Dow Jones index.
Analytical Group of Report News Agency expects further reduction until the evening. In addition, US dollar's decline will continue and major currency pairs: may approach 1.10 USD/EUR. The fall of the US-dollar to Azerbaijani manat considered as a positive event, but the key factor is oil prices.
Although, under the normal circumstances the fall of the dollar leads to a rise in oil prices, the increase in oil production has led to the fall in the world price down to the 50 USD/barrel. Analysts believe, despite all this facts, US-dollar is expected to fall somewhat at tomorrow’s currency auction.