A startling start at the opening of US markets - market wrap

U.S. stock index futures slipped and the dollar’s rally faltered after Donald Trump fired FBI Director James Comey. Oil climbed following an industry report that showed American stockpiles declining for a fifth week.

The greenback headed for the first drop in three days in the wake of Trump’s move, and after Federal Reserve Bank of Dallas President Robert Kaplan cast doubt on the pace of rate hikes in the world’s biggest economy. Treasuries advanced, while gold ended the longest run of losses since October. Europe’s Stoxx 600 Index edged lower, with Roche Holding AG the biggest laggard after a cancer drug failed in a late-stage clinical trial.

The weakness across most markets comes in the wake of gains that sent global stocks to a record. Trump’s dismissal of Comey may threaten to undermine his administration as it attempts to move tax and spending plans through Congress, just as political risks ease in Europe and corporate earnings suggest the global economy is on the mend.

Here’s what investors will be scrutinizing:
- Earnings are expected from companies including Deutsche Telekom AG and Snap Inc. Toyota Motor Corp. and SoftBank Group Corp. posted results after the close of Japanese markets.
- The Bank of England on Thursday publishes its interest-rate decision and quarterly Inflation Report.

Here are the main moves in markets:

Stocks
- The Stoxx Europe 600 slipped 0.1 percent as of 6:55 a.m. in New York, after climbing 0.5 percent Tuesday to the highest since August 2015.
- S&P 500 futures dropped 0.2 percent.

Currencies
- The Bloomberg Dollar Spot Index lost 0.2 percent after climbing 0.4 percent Tuesday.
- The euro and pound were little changed at $1.0867 and $1.2940, respectively.

Bonds
- The yield on 10-year Treasury notes fell three basis points to 2.37 percent.
- Benchmark German yields dropped three basis points to 0.4 percent, while French yields were down four basis points.

Commodities
- Gold gained 0.3 percent $1,225.07 an ounce, rebounding from five days of declines.
- West Texas oil climbed 1 percent to $46.36 a barrel, resuming gains after dropping 1.2 percent on Tuesday.
- Copper erased earlier gains to trade 0.2 percent down at $5,504 a ton on the London Metal Exchange.

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