European Stocks Drift Lower as Trump's Move to Fire FBI Director Comey Tapers Bulls

European stocks drifted lower Wednesday as investors trim bets in the region amid multi-year highs and keep a keen eye on political developments in the United States after President Donald Trump fired his FBI Director James Comey.

Broader market sentiment, however, was muted thanks in part to yesterday's move by President Trump to fire FBI Direction Comey after he was said to have misstated several facts related to his investigation of Hilary Clinton's use of a private email server.

Comey was also leading an investigation into Russia's alleged influence in the 2016 election and potential ties between Moscow and Trump campaign officials.

A further component to the market's cautious tone was linked to comments from Commerce Secretary Wilbur Ross, who told Reuters yesterday that the President's pledge to grow the economy at a 3% clip "is certainly not achievable this year" but could be met once the Administration passes a tax reform bill and trims business regulation.

Early indications from U.S. equity futures suggest a pullback at the opening bell, with the Dow Jones Industrial Average poised to fall around 65 points, or 0.31%, with a smaller 0.22% decline anticipated for the broader S&P 500. The tech-heavy Nasdaq is set to open 0.12% down from its Tuesday close of 6,120,59 points.

The European moves follow marginally firmer gains in Asia stocks overnight, which saw the U.S. dollar pull back from a three-week high and crude prices rise amid speculation that Saudi Arabia would limit supplies to the region in an effort to rebalance supplies.

Stefan D. Angelov