NEW YORK – Concerns are continuously mounting on the US’ current administration which is luring risks to come and sending the gold and yen upwards while US stocks and futures are down.
The transactions in S&P 500 Index dropped, and the equities in Asia tumbled due to rumored Trump’s decision to demand FBI Director James Comey stop the probe in the former National Security Advisor Michael Flynn. The dollar has already been losing when the President is reportedly sharing intelligence in terrorism with Russian officials, actions that he already shrugged off. Bloomberg Dollar Spot Index slid in a 6-day streak putting it to rock bottom from November. Crude also continues to drop.
According to Tomoichiro Kubota, an analyst at Tokyo-based Matsui Securities Company, the President’s economic policies could be hindered by the concerns on this issue and the greenback is compromised. For now, investors measure the extent of the situation, but it’s not easy to calculate the end of it. It cannot be decided as a risk impeachment and investors are having a hard time reading the possibilities.
After an extended period of silence in the financial markets, they are now starting to respond to the situation in a similar manner. Investors are now finding the effects of this political noise in the currency markets. The greenback is now at its rock bottom from the time when Trump’s victory shook the world, and now the movement is caused by the expectation that his policies will have a hard time crossing the legislation.
Traders are still not sure what are the main factors that are making the moves in the dollar value, but many are looking at the politics perspective. However, some speculations are saying that the drop was due to the lower results in economic growth and inflation in the US last month, a result which perfectly suits the improving condition in European economic and political risks. Traders are still on watch for the Fed’s declaration of two interest rate hikes this 2017, but there is a mounting rumor that Europe is making preparation to unleash their countermeasures.
Amid all the fuss, John Manley, chief stocks strategist at Wells Fargo Funds Management, said that there is nothing to worry about the issue in the politics of the US because it will not affect the very steady situation in New York.
The internal Economic Commission Board meeting of OPEC to talk about their official conference on the 25th of May will be held in Vienna this coming Wednesday. According to most analysts, the US Energy Information Administration is expected to release the results that crude supply is down by 2.67 million barrels in last week’s closing on the 12th of May.
Malaysia CPI and Singapore exports for April are scheduled on Wednesday, and the employment report from Australia is on Thursday.
The UK job report on Wednesday may show a 2.1 percent pay hike, which is 0.1 percent lower.
The major movements in the market are the following:
- Yen went up 0.4 percent or 112.63 versus the greenback as of 10:08 morning in Tokyo, after the 0.6 percent rise last Tuesday. Bloomberg Dollar Spot Index slid six days starlight, tumbling lower than 0.1 percent to the bottom from November 9.
- Euro is currently at 1.1097 dollars, 0.1 percent higher from the last 1 percent jump on Tuesday.
- S&P 500 Index futures dropped 0.5 percent. The results last Tuesday reached the peak at 2,405.77. Stoxx Europe 600 Index ended without too much movement.
- Japanese Topix fell 0.5 percent, Australian S&P/ASX 200 Index is down 0.7 percent, South Korean Kospi Index slid 0.1 percent, and Singapore Straits Times Index dropped 0.5 percent
- Earnings on 10-year Treasuries plunged at 2.30 percent or a 3-basis point after the 2-basis point fall last Tuesday.
- Earnings on Australia’s 10-year government notes descended to 2.54 percent or a 4-basis point.
- Gold climbed 0.4 percent or $1,242.20, its 4th day advance.
- Oil hunched to 1.2 percent or 48.10 dollars per barrel. The data from the industry did not anticipate the rise of US crude supply, delaying the move caused by the promise of Russia and Saudi Arabia to continue the supply cuts.