Asian markets down as Trump crisis threatens economic agenda

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Dollar detained losses and Asian markets sank down on Thursday as trump crisis stokes fear for agenda.

New York exchange had been through huge losses since Trump been elected and drops down more after FBI chief Memo revelation of Trump in which ordered Comey to stop investigation against ex-national security advisor Michael Flynn’s links to Moscow.

Market analyst said the uncertainty is shaking the global market. There is a growing fear that Trump’s plans for tax cuts, big spending and red-tape slashing.  Which had fuelled a global equities and dollar rally following his November election win, will be thrown off course.

Greg McKenna, chief market strategist at AxiTrader said prosecute Donald Trump was a pipe dream for the Democrats but extremely unlikely to most other observers until a few days ago. He added as it drags on, it hurts sentiment and recently often threatens the administration’s agenda especially around tax and infrastructure

Tokyo dropped 1.3 percent, Hong Kong shed 0.6 percent in the afternoon, Sydney shed 0.8 percent, Seoul was 0.3 percent off and Singapore also gave up 0.3 percent. Shanghai lost 0.5 percent, Wellington 0.7 percent and Taipei 0.4 percent.

In early European trade London dropped 0.3 percent and Paris was flat while Frankfurt gave up 0.1 percent.

Stephen Innes senior trader OANDA said there is very high level of insecurity discharge from the markets but one thing that is crystal clear, investors now believe that at a minimum the rising US political collapse will put at risk the White House policy agenda, and at the extreme, a Trump impeachment will lead to a flat out market collapse.

Dealers began to reevaluate the chances of a Federal Reserve Interest rate will jump by next month.

Following are the figures from Global Market, Tokyo – Nikkei 225: DOWN 1.3 percent at 19,553.86 (close), Hong Kong – Hang Seng: DOWN 0.6 percent at 25,136.52 (close), Shanghai – Composite: DOWN 0.5 percent at 3,090.14 (close), London – FTSE 100: DOWN 0.3 percent at 7,480.42. New York – Dow: DOWN 1.8 percent at 20,606.93 (close)

Following are the Exchange rates frm round the world, Euro/dollar: DOWN at $1.1145 from $1.1157 at 2100 GMT, Dollar/yen: UP at 111.00 yen from 110.96 yen, Pound/dollar: DOWN at $1.2962 from $1.2967

 

Sources: AFP

 

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