Donald Trump storm hits stocks again but dollar steadies
Swirling uncertainty over U.S. President Donald Trump’s political future saw world stocks extend their steepest fall in over six months on Thursday,
Asian stocks fell sharply after Wall Street suffered its worst day in over eight months overnight [.N] and Europe’s main bourses dropped between 0.8 and 1.3 percent as the selling momentum built again.
Germany’s benchmark 10-year Bund yield fell to a two-week low and U.S. Treasury yields were flat having dropped as far as 2.2120 percent the previous day, which had been a one-month low.
The allegations surrounding Trump have not only thrown doubt over the future of the pro-growth policies he promised but they have raised the possibility he could end up leaving the White House prematurely.
Trump says he is being given one of the toughest rides of any president in U.S. history.
Wall Street futures pointed to another, albeit more modest, fall of around 0.2 percent when it reopens later. Trump was not the only leader under scrutiny either.
Trouble mounted for Brazilian President Michel Temer who was recorded discussing payments to silence testimony by a potential witness in the country’s biggest-ever graft probe, sources told media including Reuters.
An exchange-traded fund of Brazilian equities fell more about 8 percent in Tokyo after the Brazilian real had dropped more than 1.2 percent in local markets.
In commodity markets, which have also been highly volatile in recent weeks but due mainly to supply and demand issues, there were steadier signals.
Brent oil futures dipped back to $52.05 a barrel after hitting a two-week high overnight on the back of an ongoing effort by OPEC to cut production.
Safe-haven gold hovered near a two-week high prompted by the weaker dollar and the risk aversion gripping the broader markets.
Spot gold was at $1,260 an ounce having hit $1,263.02, its highest since May 1 the previous session.
Source : Reuters