Wall St caps Trump-induced stocks selloff; dollar ticks up
Wall St caps Trump-induced stocks selloff; dollar ticks up
Trump concerns drag down global stocks, U.S. dollar
19 May, 2017, 15:26
Trump's absence would still leave the market-friendly Grand Old Party dominant in D.C., at least for another two years - until midterm elections - and under that regime Trump's pro-business agenda, under the guidance of Mike Pence or another Republican, could come to full bloom.
Enough may finally be enough for Wall Street following reports that President Donald Trump asked then-FBI Director James B. Comey to hit the brakes on an investigation into former national security advisor Gen. Michael T. Flynn and his alleged connections to Russian Federation and Turkey.
The Justice Department on Wednesday named former Federal Bureau of Investigation chief Robert Mueller as special counsel to investigate alleged Russian interference in the 2016 US election and possible collusion between Trump's campaign and Moscow.
Tokyo plunged 1.3 percent, while Hong Kong shed 0.5 percent in the afternoon, Sydney shed 0.8 percent, Seoul was 0.3 percent off and Singapore also gave up 0.3 percent.
In 1.13pm trading in NY, the Dow Jones Industrial Average dropped 1.3 per cent, while the Nasdaq Composite Index shed 1.7 per cent.
The US dollar index against a basket of major currencies was down 0.1 per cent at 97.498, not far from a six-month trough of 99.333 reached the previous day.
Although Mr Trump's surprise election victory had initially sparked buying in the dollar and USA assets on hopes for his tax cuts and infrastructure spending plans, such "Trump trades" has been wound back. United States stocks also remain in bullish territory despite the biggest upset to hit the equities market this year.
"The readings on jobless claims and the Philly Fed index back expectations for faster (second quarter) growth and a Fed rate hike next month".
"While there is no particular headline behind the move, a likely combination of slipping US yields, softer oil prices and heightened political uncertainty in Washington are providing traders with this morning's toxic dollar elixir". Such a scenario could be enough to push dollar/yen back towards the 100 level.
The dollar has been hard hit by fears that the US political system could become engulfed by crisis, preventing lawmakers from pushing through tax or spending reforms. Sovereign bonds also rallied, pushing down yields. The People's Bank of China pumped a net 170 billion yuan ($24.7 billion) into the financial system via its daily money-market operation, the largest amount since just before the Lunar New Year holiday in January.
U.S. Treasury yields fell, with benchmark 10-year notes up 23/32 in price to yield 2.25 percent, the lowest level since April. However, this is still above the April low of 2.165% when geopolitical concerns over the French election and North Korea had spooked the markets.
"The market's key focus right now is the political uncertainty linked to the Trump allegations, not economic fundamentals", said Toshihiko Sakai, a senior dealer at Mitsubishi UFJ Trust and Banking.
While the Dollar remains under pressure for now, we can expect some support for the greenback, though risk appetite will be on the back burner with European equities in the red at the time of the report, in response to the overnight slide in the Dow.
Democrats say reports Trump asked Comey to drop the investigation into Michael Flynn amount to obstruction of justice, if true.
"Impeaching Donald Trump was a pipe dream for the Democrats but extremely unlikely to most other observers until a few days ago", he added.
Chris Cornell, lead singer of Soundgarden and Audioslave, died Wednesday night, his representative told CNN . He reunited with Soundgarden in 2010 and they released a sixth studio album, King Animal , two years later.
Martin Beck, senior economic adviser to the EY ITEM Club, said that "real regular pay fell for the first time since late 2014". THE UK's unemployment rate has fallen to a 42-year low as a record number of people are in work, figures show.
The investment professionals in our partner's database now own: 212.97 million shares, down from 222.62 million shares in 2016Q3. The Firm operates through three business divisions: agriculture and turf, construction and forestry, and financial services.
A suspected drunk driver mounted the kerb close to New York's Times Square and drove for three blocks smashing into pedestrians. After the wild driver hit a pole - which injured a man when it fell on his head - the man made a run for it, witnesses said.
Raisi has tried to gain support by promising more financial support to the working class and to triple cash handouts to the poor. Iran's president is subordinate but still powerful, with considerable influence over both domestic policy and foreign affairs.
It was so just barely, in fact, that Kase didn't even recognize this shining moment of his career as it happened in real time . There's a real good chance he does so, but it won't be because Johansen isn't willing to go up against Kesler.
I really enjoy these tournaments. "This is a very emotional period of the season". "I hope you understand and respect that". The victory leaves Nadal in flawless shape for the Roland Garros where the French Open is set to kick off in a week's time.
In a weird twist on Wednesday, Russian President Vladimir Putin offered to turn over to Congress records of Trump's discussions. Asking Comey to let the Flynn investigation go might not qualify as obstruction of justice , but it dances close to the line .
Trump is both publicly and privately stewing about Deputy Attorney General Rob Rosenstein's decision to name special counsel. His latest tweets came hours before he was to hold a joint press conference with the visiting Colombian president.
Some health care workers are also asking patients to reconsider if they really need checkups or appointments. Cyber security experts have said the majority of the attacks targeted Russia, Ukraine and Taiwan.
On Wednesday night he said: "the U.S. is not pursuing efforts to reduce Iran's sales of crude oil at this time". The State Department said it will "continue implementing USA sanctions-lifting commitments".
Car Plows Into Crowded Sidewalk in Times Square
Rojas had been arrested in 2008 in Queens and 2015 in Manhattan for drunk driving, officials said at the press conference. The aftermath was "pretty gory", the Queens resident said. "I'm so freaked out!" "It was a pretty scary scene ".
New French government unveiled, Le Drian foreign minister
Macron said he's relying on Tusk to "go even further in this work of re-shaping and setting in motion again a European ambition". The MEP was among the first politicians to support Macron when he set up his political movement En Marche, or On the Move.
Wenger's future will be decided after FA Cup
I don't know [how you should interpret it]. "On Sunday against Everton , it is sold out", said Wenger. They play the way they want to play, so if teams of Tony Pulis want to play that way, perfect.
US Imposes Financial Sanctions On Venezuela Supreme Court
Marco Rubio is praising the Trump administration for imposing sanctions on eight members of Venezuela's Supreme Court. Ambassador Olof Skoog said the Security Council "should be on top of issues that relate to preventive diplomacy".