Originally published by CMC Markets
Markets are likely to remain on hold today as traders wait on the US Congress to resolve its impasse on revision of the Obamacare legislation.
The fact that the S&P 500 index was up 0.4% at one stage last night provides some insight into likelihood that markets will, at least initially, react positively if Congress is able to reach an early compromise and pass new health care legislation. While this may keep alive expectations that the Trump Administration will be effective in getting its economic program passed into law, optimism may be tempered by the fact that the Senate remains a significant obstacle to Trump’s healthcare legislation even it is passed by Congress.
There were signs of bargain hunting in the major mining stocks yesterday with share prices holding the line after several days of selling. Yesterday’s rally in the spot iron ore price should help mining stocks open on a firm note this morning.
Relief from news that striking workers at BHP Billiton Ltd's (AX:BHP) Escondida mine in Chile are likely to return to work will be tempered by the fact that a resolution to this dispute hasn’t been achieved. Workers have elected to return to work under their existing contract meaning pay conditions under a new contract still need to be negotiated within 18 months.