Overseas Headlines- February 24, 2017


Futures drop along with oil prices
U.S. stock index futures were lower on Friday as a drop in oil prices weighed on the "Trump rally", with investors also seeking details regarding President Donald Trump’s plans to boost the economy. Oil prices fell after U.S. crude inventories rose for a seventh week, showing the market is still struggling to ease oversupply. Gain in crude prices helped U.S. stocks edge higher on Thursday as did a renewed pledge by Trump to bring back jobs to the United States. Trump’s promises of tax reforms, a reduction in regulation and increased infrastructure spending, has helped spur equities to record highs. The S&P 500 is up more than 10 percent since the election. The Dow notched a record high for a tenth straight session on Thursday, its longest such streak since 1987.


Euro Set for Third Weekly Decline; Further Losses Seen Limited
The euro was on course for a third straight week of losses versus the dollar amid political uncertainties centred on France but some analysts and investors see limited further downside. ABN Amro has revised up its euro forecasts while UBS Asset Management is overweight the single currency versus the dollar. The euro fell to a six-week low against the dollar this week amid heightened investor worries that France’s far-right presidential candidate Marine Le Pen was gaining traction in the polls. Le Pen, who wants to take her country out of the euro, is seen winning the first round of voting but will likely lose the second, polls signalled.


China to tighten oversight of asset management industry – central bank official
China will tighten oversight of its sprawling asset management industry as it moves to rein in financial risks, a senior central bank official said in remarks published on Friday. Ruan Jianhong, head of the Survey and Statistics Department at the People’s Bank of China (PBOC), said the financial sector had shown "deviation", with speculative activities rife in the fast-growing asset management industry. Banks, insurers and brokerages have developed complicated asset management products involving different industries and markets in the name of "innovation", as returns from the real economy shrink, Ruan told state-owned Financial News in an interview.