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Health-care flop puts pressure on global markets, oil producers consider an extension of the output cut, and it's a big week for Brexit. Here are some of the things people in markets are talking about today.

Markets slump

The failure of the health-care bill in Congress on Friday is putting pressure on markets as investors reassess the post-Trump election rally. Overnight, the MSCI Asia Pacific Index dropped 0.3 percent, while Japan's Topix index closed 1.3 percent lower as the dollar weakened against the yen. In Europe, the Stoxx 600 Index was down 0.7 percent at 5:10 a.m. Eastern Time, with mining stocks leading the slide. U.S. stock futures were also losing ground. The Bloomberg Dollar Spot Index sank below its 200-day moving average to reach its lowest level since Nov. 10.

Tax plans

The failure of the health-care bill is seen by markets as a sign that President Donald Trump may have difficulty in passing the tax cuts promised by his administration. The president criticized Republicans in the House for defeat of the health-care bill in a posting on Twitter yesterday. House Speaker Paul Ryan warned that the failure of the bill "does make tax reform more difficult."

Oil production

At a meeting in Kuwait over the weekend oil producers said they would consider extending their output curbs beyond the current end-of-June deadline. The existing agreement has a compliance rate of 94 percent, according to Kuwait's Oil Minister Issam Almarzooq. A barrel of West Texas Intermediate for May delivery was trading 33 cents lower at $47.64 as of 5:31 a.m.

Brexit week

On Wednesday U.K. Prime Minister Theresa May will write to EU President Donald Tusk to officially trigger Article 50 of the Lisbon Treaty, which will start the two-year countdown to Britain leaving the European Union. There are already signs that the negotiating process may be a difficult one, with the Bank of England this morning saying Brexit remains one of the key risks to the U.K. economy. 

Fed speakers

If you thought last week was a busy one for Fed speakers, you ain't seen nothing yet. No fewer than 14 Fed speeches are due this week, with tomorrow's address by Chair Janet Yellen likely to be the highlight. With Treasury bears feeling the squeeze, any further talk of Fed balance sheet adjustment could provide some relief. 

What we've been reading 

This is what's caught our eye over the weekend.

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