US markets remain suppressed for the fourth consecutive day after the drama of impeachment escalates. This reveals new risks for markets and serious political uncertainty.
The S & P500 has made a new low, but shortly after the White House published a rough draft of the correspondence between Trump and the President of Ukraine. Technology stocks led the downturn.
On the corporate front, Philip Morris and Altria are rising after both companies cancel their merger plans. Nike shares climbed to new records after stronger-than-expected reports.
The sudden turmoil in Washington comes amid signals of a worsening global economy, making it more and more difficult for investors to be determined. Not only that, they already doubt that the central bank will be able to revive economic growth.
The situation was grimmer in Europe. The Stoxx Europe 600 has seen its sharpest decline in the last six weeks. Shares in the UK have seen declines as parliament resumes work.
In true Trump style, he again sent a life-saving tweet to the markets, saying that "the trade deal was closer than we think."
Towards the end of the European session, US indices turned up, the dollar index rose 0.4%, the British pound sank 0.9%, the euro fell 0.4%. The Japanese yen remains weak with a 0.4% decline. 10-year US bonds are up 1 basis point to 1.65%, 2-year bonds are down 1.62%. Oil remains under pressure down 1.7%, gold remains down 0.3%.
Source: Bloomberg Finance L.P.
Graphs: Used with permission of Bloomberg Finance L.P.
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