2 Min Market Summary: 28 Mar 2019

The U.S. Dollar Index increased 0.2% to 96.89. The 2-yr yield declined five basis points to 2.21%, and the 10-yr yield declined four basis points to 2.37%.

In the EU, ECB’s Draghi indicated the central bank may maintain its highly accommodative policy for an even longer period. 2019 growth expectations for Italy were cut to zero by a confederation of industrial employers. Switzerland’s KOF Institute lowered its expectations for 2019 Swiss GDP growth to 1.0% from 1.6%. After selling off sharply on Tuesday, Euro remained under pressure as German 10 year bond yields drop to a 2.5 year low.

In Brexit, there was no sign of a breakthrough in the  deadlock on Wedesday when UK lawmakers failed to agree on an alternative to Theresa May’s beleaguered plan even as she offered to resign in a desperate attempt to save it. Facing intense pressure from her fractured party, the British Prime Minister said she would step down if and when her Brexit deal was delivered. There was a desire for “a new approach, and new leadership,” she told a meeting of lawmakers from her Conservative Party. Hours later, members of the House of Commons voted on a range of measures designed to break the impasse over Brexit – but failed to agree on any of them. May cited, “I am prepared to leave this job earlier than I intended in order to do what is right for our country and our party, I know there is a desire for a new approach and new leadership in the second phase of the Brexit negotiations and I won’t stand in the way of that.” Downing Street plans to put May’s Withdrawal Agreement back before Parliament before the end of the week.

The S&P 500 lost 0.46% on Wednesday, although it had been down as much as 1.1% on recurring concerns about slowing growth. Ten of the 11 S&P 500 sectors finished lower, led by health care (-0.8%) and energy (-0.7%). The industrial sector (+0.1%) was the lone group to finish higher.