Even though the tension has decreased, the European and Asian markets suffered heavy losses. The man behind it is the same individual who made the US markets grow – Donald Trump.
The S&P 500 Index dropped 0.2%, with fresh info about secret contacts between Donald Trump’s campaign and the Kremlin. Treasury yields plummeted, reaching the lowest in a month, while oil dropped the most in two weeks. The dollar gained some value from it by emerging-market currencies as Brazilian political crisis contrbuted to the chaos in Washington. The Ibovespa was stopped after the plunge spurred a circuit breaker.
As the scandal surrounding Trump questions the policy agenda that helped push global equities to records as recently as Tuesday, an indicator of U.S. stock volatility increased the most since the U.K. voted to leave the EU. Many of the trades influenced by the president’s November victory have now moved backwards, with the dollar all but losing its recent rally.
This Wednesday, the Justice Department called for a special meeting to investigate Russia’s role in the 2016 election, deepening a crisis started by reports Trump asked FBI Director James Comey in February to stop an investigation before sacking him last week. The crisis seems severe as even the republicans want to start the impeachment procedure against Trump.
The exchange fluctuations index has reached its peak since the Great Britain has decided to leave the Union. This situation can pose a threat to the economic shape of the country. If the US economy slows down, the dollar will lose value and thsi may trigger some changes of the FED policy.
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