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| Wall Street suffers worst opening this year after Trump allegations – business live | Wall Street suffers worst opening this year after Trump allegations – business live |
| (35 minutes later) | |
| 5.26pm BST | |
| 17:26 | |
| European markets hit by Trump concerns | |
| After all the talk of record highs and low volatility, it was almost inevitable that something would turn up to rock the boat. Equally, it was almost inevitable that something would be the latest Donald Trump developments. The newest controversy involved accusations the president had asked former FBI James Comey to drop his investigation into former national security adviser Michael Flynn. That prompted all sorts of disquiet, and even talk of possible impeachment. | |
| Not surprisingly, that sent investors heading for the exits, both for the chaos such a move would cause and also the prospect that even if things did not escalate that far, Trump and the White House would be distracted from their market-friendly tax reforms and infrastructure spending plans. So as Wall Street slumped, European markets followed suit, although the FTSE 100 managed to hold fairly firm, helped by a rise in safe haven gold miners’ shares. | |
| But despite the falls, Chris Beauchamp, chief market analyst at IG, said there was no need to panic: | |
| It says a lot for how quiet markets have been that today’s selloff, which has been rather dramatic relative to the recent past, is being trumpeted in some quarters as the beginning of the next big pullback. There are justifiable reasons for thinking we are due a drop, some of which I have alluded to over the past few weeks - weaker US data, declining participation on indices, and others could all be cited as the culprits. Now is not the time to panic however; the S&P 500 has fallen by 30 points as of 4pm London time, but is still up more than 6% for the year so far. We are not in correction territory just yet, and may not even get there anyway. | |
| US banks are some of the hardest hit this afternoon, having been consistent underperformers for two months now. It looks like investors are already beginning to worry that a June rate hike is looking less likely, while the sight of the words ‘Trump’ and ‘impeachment’ hint at the possibility that regulatory reform is now off the agenda. | |
| In Europe, the final scores showed: | |
| The FTSE 100 finished down 0.25% or 18.56 points at 7503.47 | |
| Germany’s Dax dropped 1.35% to 12,631.61 | |
| France’s Cac closed 1.63% lower at 5317.89 | |
| Italy’s FTSE MIB fell 2.31% to 21,283.72 | |
| Spain’s Ibex ended 1.79% lower at 10,786.1 | |
| In Greece, the Athens market added 0.04% to 789.08 | |
| On Wall Street, the Dow Jones Industrial Average is currently 260 points or 1.24% lower. | |
| On that note, it’s time to close for the evening. Thanks for all your comments, and we’ll be back tomorrow. | |
| 4.39pm BST | 4.39pm BST |
| 16:39 | 16:39 |
| And more on the dollar falling: | And more on the dollar falling: |
| "I think our dollar is getting too strong, and partially that’s my fault because people have confidence in me.” - D Trump, April. pic.twitter.com/8LI89Aikdq | "I think our dollar is getting too strong, and partially that’s my fault because people have confidence in me.” - D Trump, April. pic.twitter.com/8LI89Aikdq |
| 4.33pm BST | 4.33pm BST |
| 16:33 | 16:33 |
| While the Dow Jones Industrial Average, Germany’s Dax and France’s Cac are all down more than 1%, the FTSE 100 is off just 0.2%. | While the Dow Jones Industrial Average, Germany’s Dax and France’s Cac are all down more than 1%, the FTSE 100 is off just 0.2%. |
| FTSE is on drugs. World is collapsing on Trump impeachment story and FTSE says 'That's nothing mate, you should try Brexit...' | FTSE is on drugs. World is collapsing on Trump impeachment story and FTSE says 'That's nothing mate, you should try Brexit...' |
| 4.27pm BST | 4.27pm BST |
| 16:27 | 16:27 |
| Pressure on #dollar coming from #Trump concerns sees #pound sniffing US$1.30 for first time in almost 8 months. #Euro at US$1.115 | Pressure on #dollar coming from #Trump concerns sees #pound sniffing US$1.30 for first time in almost 8 months. #Euro at US$1.115 |
| Updated | Updated |
| at 4.29pm BST | at 4.29pm BST |
| 4.15pm BST | 4.15pm BST |
| 16:15 | 16:15 |
| Dollar loses all its post-US election gains | Dollar loses all its post-US election gains |
| The US dollar has now lost all the gains it made since Donald Trump was elected president. The dollar index shows: | The US dollar has now lost all the gains it made since Donald Trump was elected president. The dollar index shows: |
| David Madden, market analyst at CMC markets, said: | David Madden, market analyst at CMC markets, said: |
| The decline in the US dollar has wiped out all the gains it has made since Donald Trump was elected. The speculation about his impeachment is rising and the dollar is falling in tandem. The decline in UK unemployment gave the pound a boost, and the steady inflation rate from the eurozone gave traders a minor reason to buy the respective currencies, but the moves were magnified by the weaker greenback. Make no mistake, the drop in the US dollar is the reason behind in move in the GBP/USD and the EUR/USD. | The decline in the US dollar has wiped out all the gains it has made since Donald Trump was elected. The speculation about his impeachment is rising and the dollar is falling in tandem. The decline in UK unemployment gave the pound a boost, and the steady inflation rate from the eurozone gave traders a minor reason to buy the respective currencies, but the moves were magnified by the weaker greenback. Make no mistake, the drop in the US dollar is the reason behind in move in the GBP/USD and the EUR/USD. |
| Updated | Updated |
| at 4.20pm BST | at 4.20pm BST |
| 3.43pm BST | 3.43pm BST |
| 15:43 | 15:43 |
| Oil jumps as US stocks fall | Oil jumps as US stocks fall |
| US crude inventories declined by 1.75m barrels last week, a sign of increasing demand, even though the fall was lower than the expected 2.4m barrel drop. | US crude inventories declined by 1.75m barrels last week, a sign of increasing demand, even though the fall was lower than the expected 2.4m barrel drop. |
| The news has pushed the oil price higher again, with West Texas Intermediate up 1.6% at $49.48 and Brent crude 1.7% better at $52.54. | The news has pushed the oil price higher again, with West Texas Intermediate up 1.6% at $49.48 and Brent crude 1.7% better at $52.54. |
| 3.31pm BST | 3.31pm BST |
| 15:31 | 15:31 |
| European markets have seen their falls accelarate after Wall Street’s slide. | European markets have seen their falls accelarate after Wall Street’s slide. |
| Germany’s Dax is down 121 points and France’s Cac has lost 68 points. The FTSE 100 has fared a little better, falling 26 points. Connor Campbell, financial analyst at Spreadex, said: | Germany’s Dax is down 121 points and France’s Cac has lost 68 points. The FTSE 100 has fared a little better, falling 26 points. Connor Campbell, financial analyst at Spreadex, said: |
| After the brief morning distraction of the UK jobs report, focus turned firmly back to Trump’s latest foul-up following the US open. | After the brief morning distraction of the UK jobs report, focus turned firmly back to Trump’s latest foul-up following the US open. |
| The Dow Jones set the tone this afternoon, the index plunging more than 200 points as the bell rang on Wall Street. That leaves the Dow at its worst price since April 25th, the day investors first got a sniff of Trump’s tax plan. The dollar fared no better; it slid 1.4% against the Japanese yen and 0.3% against the pound, while remaining at a 6 month low against the euro. | The Dow Jones set the tone this afternoon, the index plunging more than 200 points as the bell rang on Wall Street. That leaves the Dow at its worst price since April 25th, the day investors first got a sniff of Trump’s tax plan. The dollar fared no better; it slid 1.4% against the Japanese yen and 0.3% against the pound, while remaining at a 6 month low against the euro. |
| Investors have been shaken by reports that Trump urged the then-FBI chief Comey to drop his investigation into Michael Flynn, the latest twist in the Russia saga that is gradually engulfing the President. There are a couple of reasons as to why this has caused such jittery trading. Firstly, it threatens to delay, or completely derail, Trump’s market-lifting infrastructure and tax policies. Secondly, and more drastically, it could actually lead to impreachment... an eventuality that would completely erase the foundations of the market’s recent record highs. | Investors have been shaken by reports that Trump urged the then-FBI chief Comey to drop his investigation into Michael Flynn, the latest twist in the Russia saga that is gradually engulfing the President. There are a couple of reasons as to why this has caused such jittery trading. Firstly, it threatens to delay, or completely derail, Trump’s market-lifting infrastructure and tax policies. Secondly, and more drastically, it could actually lead to impreachment... an eventuality that would completely erase the foundations of the market’s recent record highs. |
| In the Eurozone the DAX and CAC performed just as badly as their US counterpart, dropping 0.9% and 1.2% respectively. The FTSE, on the other hand, was more resilient; though it did fall by 25 or so points, this still kept it at or around the 7500 mark. The UK index is being somewhat supported by the likes of Fresnillo and Randgold Resources, which both benefited from gold’s 1.6% rise. | In the Eurozone the DAX and CAC performed just as badly as their US counterpart, dropping 0.9% and 1.2% respectively. The FTSE, on the other hand, was more resilient; though it did fall by 25 or so points, this still kept it at or around the 7500 mark. The UK index is being somewhat supported by the likes of Fresnillo and Randgold Resources, which both benefited from gold’s 1.6% rise. |
| 3.27pm BST | 3.27pm BST |
| 15:27 | 15:27 |
| Here is the damage to the Dow: | Here is the damage to the Dow: |
| Dow -200pts; most since 21 Mar (-237), 11 Oct (-200) and 29 Sept (-196) | Dow -200pts; most since 21 Mar (-237), 11 Oct (-200) and 29 Sept (-196) |
| Lots of red out there today. Only 2 of the Dow 30 stocks are up right now. $UNH $WMT. Biggest Dow losers? Banks. $GS $JPM off more than 2%. | Lots of red out there today. Only 2 of the Dow 30 stocks are up right now. $UNH $WMT. Biggest Dow losers? Banks. $GS $JPM off more than 2%. |
| 3.11pm BST | 3.11pm BST |
| 15:11 | 15:11 |
| Banks are among the fallers as the US market decline continues. The S&P 500 banking index is down 1.8% with Bank of America off 2% and JP Morgan 1.7% lower. Meanwhile the Dow is now down 215 points or just over 1%. | Banks are among the fallers as the US market decline continues. The S&P 500 banking index is down 1.8% with Bank of America off 2% and JP Morgan 1.7% lower. Meanwhile the Dow is now down 215 points or just over 1%. |
| With #Dow down 200 & #financials underperforming,watch for the tug of war between the unwinding of crowded trades & the buy on dips strategy | With #Dow down 200 & #financials underperforming,watch for the tug of war between the unwinding of crowded trades & the buy on dips strategy |
| 2.42pm BST | 2.42pm BST |
| 14:42 | 14:42 |
| Meanwhile the VIX volatility index - the fear index - has moved higher after hitting a 24 year low earlier this week. It has jumped 20% to 12.69 in the wake of the latest Trump revelations. | Meanwhile the VIX volatility index - the fear index - has moved higher after hitting a 24 year low earlier this week. It has jumped 20% to 12.69 in the wake of the latest Trump revelations. |
| 2.35pm BST | 2.35pm BST |
| 14:35 | 14:35 |
| Wall Street opens sharply lower | Wall Street opens sharply lower |
| US markets have made their worst start to the year following the latest allegations about Donald Trump trying to interfere with a federal investigation. | US markets have made their worst start to the year following the latest allegations about Donald Trump trying to interfere with a federal investigation. |
| After news of a leaked memo from sacked FBI director James Comey, the Dow Jones Industrial Average has dropped 180 points or 0.88%. The S&P 500 opened 0.8% lower and the Nasdaq Composite down 0.94%. Of course both the S&P and Nasdaq have been at or close to their record highs until now. | After news of a leaked memo from sacked FBI director James Comey, the Dow Jones Industrial Average has dropped 180 points or 0.88%. The S&P 500 opened 0.8% lower and the Nasdaq Composite down 0.94%. Of course both the S&P and Nasdaq have been at or close to their record highs until now. |
| it's a good day for gold, up $20 today as Trump's political woes deepen, sending investors for cover into safe havens. | it's a good day for gold, up $20 today as Trump's political woes deepen, sending investors for cover into safe havens. |
| 2.19pm BST | 2.19pm BST |
| 14:19 | 14:19 |
| Back in the US, and the Dow Jones Industrial Average is now forecast to open around 170 points lower, as investors fret about the latest shennanigans in the White House. But it doesn’t seem to be panic level yet. | Back in the US, and the Dow Jones Industrial Average is now forecast to open around 170 points lower, as investors fret about the latest shennanigans in the White House. But it doesn’t seem to be panic level yet. |
| Dow off 170 points. Means Wall Street is troubled, but not full blown panicked yet over Trump https://t.co/6vqS717Ish via @LaMonicaBuzz | Dow off 170 points. Means Wall Street is troubled, but not full blown panicked yet over Trump https://t.co/6vqS717Ish via @LaMonicaBuzz |