Stock markets slip after US President shares classified information
May 22, 2017 8:10 am
US dollar index and global stocks fell on reports that US President Donald Trump revealed classified information to Russia.
The U.S. dollar and global stock markets sold off this week as investors fled risky assets amid reports that President Donald Trump shared classified information with Russian officials.
Confidence in the Trump administration was further diminished as news reported that Donald Trump had also asked the former Federal Bureau of Investigation (FBI) Director James Comey to end a probe into the former national security adviser Mike Flynn, raising questions over whether President Trump tried to interfere with a federal investigation.
Fear also surfaced that the US President may now face possible impeachment charges, raising uncertainty about President Trump’s ability to deliver on his tax and banking reforms and infrastructure spending.
US stock markets declined sharply, with the Dow Jones industrial average at one point trading down by over 422 points, with both the Dow Jones index and the S&P 500 index suffering their worst decline since September 2016.
The CBOE Volatility index (VIX), a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices, ended above the 15 level, in it’s highest close since April 13. The US dollar index has now erased all its post US election gains, with the greenback down sharply across the board for the week against a basket of currencies.
Investors moved into safe haven assets such as the Japanese yen currency. The USD/JPY pair sunk as low as 110.227, after starting the week just below the 114 level.
The euro currency also had a strong week, moving to a six month high against the US dollar, rising above the 1.1200 level and after starting the week below 1.0900.
UK retail sales beat expectations, sending the British pound above the 1.3000 level against the US dollar for the first time this year. The pound soared to a yearly high of 1.30386 as April retail sales showed a 2.3% increase, beating expectations of 1.1%. The previous month showed a slowdown in spending, with the UK consumers under increasing pressure from rising inflation, however the April report spurred investors confidence in the post-Brexit UK economy.
Australian employment figures for April surprised on the upside, beating market consensus and sending the Australian dollar higher against the US dollar. Figures showed that 37,000 jobs had been created, far exceeding expectations of 5,000. The official unemployment rate also dropped to 5.7% in April, dropping from the previous month’s rate of 5.9%.
US dollar index and global stocks fell on reports that US President Donald Trump revealed classified information to Russia.
The U.S. dollar and global stock markets sold off this week as investors fled risky assets amid reports that President Donald Trump shared classified information with Russian officials.
Confidence in the Trump administration was further diminished as news reported that Donald Trump had also asked the former Federal Bureau of Investigation (FBI) Director James Comey to end a probe into the former national security adviser Mike Flynn, raising questions over whether President Trump tried to interfere with a federal investigation.
Fear also surfaced that the US President may now face possible impeachment charges, raising uncertainty about President Trump’s ability to deliver on his tax and banking reforms and infrastructure spending.
US stock markets declined sharply, with the Dow Jones industrial average at one point trading down by over 422 points, with both the Dow Jones index and the S&P 500 index suffering their worst decline since September 2016.
The CBOE Volatility index (VIX), a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices, ended above the 15 level, in it’s highest close since April 13. The US dollar index has now erased all its post US election gains, with the greenback down sharply across the board for the week against a basket of currencies.
Investors moved into safe haven assets such as the Japanese yen currency. The USD/JPY pair sunk as low as 110.227, after starting the week just below the 114 level.
The euro currency also had a strong week, moving to a six month high against the US dollar, rising above the 1.1200 level and after starting the week below 1.0900.
UK retail sales beat expectations, sending the British pound above the 1.3000 level against the US dollar for the first time this year. The pound soared to a yearly high of 1.30386 as April retail sales showed a 2.3% increase, beating expectations of 1.1%. The previous month showed a slowdown in spending, with the UK consumers under increasing pressure from rising inflation, however the April report spurred investors confidence in the post-Brexit UK economy.
Australian employment figures for April surprised on the upside, beating market consensus and sending the Australian dollar higher against the US dollar. Figures showed that 37,000 jobs had been created, far exceeding expectations of 5,000. The official unemployment rate also dropped to 5.7% in April, dropping from the previous month’s rate of 5.9%.
http://www.abc.net.au/news/2017-05-18/unemployment-jobs-data-april-abs/8537162
https://uk.finance.yahoo.com/news/ftse-100-extends-losses-us-073126936.html
https://www.theguardian.com/us-news/2017/may/15/donald-trump-shared-classified-information-russia-white-house-report
http://uk.reuters.com/article/us-global-markets-trump-analysis-idUKKCN18E22W
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