■ S&P 500 loses 1.4% weekly as Trump fails to pass healthcare plan

■ EUR/USD rises to 1.0798, on shaky Trumpflation Trade prospects, strong EUR PMIs

■ Oil recedes to USD 47.97 while U.S. rig count continues to advance

■ Gold advances 1.2% weekly as markets seek safer havens

The S&P 500 exhibited its worst weekly performance since November’s elections, this week, at a 1.4% decline. U.S. equities came under fire as Trump’s administration had to pull the healthcare bill aimed at replacing Obamacare. Providing some support for the premise that the administration pragmatism persists, Trump later announced that it will focus on targeting its tax reform. Losses at the Dow were somewhat larger than the S&P, at -0.3% on Friday and -1.5% for the week. The Nasdaq proved relatively indifferent to Friday’s woes, adding 0.2% for the day. The CBOE VIX index implied substantial concerns towards the end of the day’s session, touching a highest for the year at 14.16. News on the pulling of the bill, however, aided it recede to a lower, but elevated-still 12.96.

In spite of the fact that the current hardships mark a substantial risk for the Trump administration’s ability to deliver its promises, the “Trump Trade” managed to get out with a few bruises. The U.S. 10 year bond’s yield, in particular, fell about 0.1% for the week, ending at 2.41%, substantially higher than the 1.8% or so at which at traded ahead of the elections. The same trade, needless to say, was widely regarded at the cause for the rapid appreciation of the Dollar vs. the EUR following the elections.

Indeed, trading at the USD has been edgy towards the end of the week, though with the dam still standing, EUR/USD added a modest 0.1% on Friday, concluding a 0.6% weekly increase, to 1.0798. Some of the Euro’s Friday strength also stemmed from better than expected preliminary March Manufacturing Purchasing Managers’ Index figures, pointing to a continued recovery in the economy. The evidently brittle state for Trumpflation also pushed the JPY as a more appealing reserve currency, with USD/JPY losing 1.2% for the week, to 111.34.

Oil retreats as gold advances on flight to safety

Oil prices continued to take a beating this week, losing 1.7% to USD 47.97. Data makes declines seem relatively contained though amid Baker Hughes Friday reports of the rig count complement the previous week’s 21 rig surge by adding another 10 to 809. Crude inventories, similarly, were reported to have added 4.95M barrels on Wednesday, greatly exceeding analyst expectations.

Gold prices spiked to USD 1,251.97 on Friday, as market woes peaked, later moderating to USD 1,243.57, when those faded. In a weekly perspective though, and with back wind coming from the lower yields in U.S. bonds, gold us up 1.2% for the week.