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Here's How Markets Are Reacting to News of the Trump-Comey Memo
Bloomberg
by Eric Lam and Isobel Finkel
5/17/2017
Excerpt:
Trump's FBI Crisis Deepens in Comey Memo Allegation
The latest political turmoil in Washington has triggered a bout of risk aversion in financial markets after the extended lull of the past few weeks.
Asian equities retreated overnight, S&P 500 Index futures slipped and haven assets from gold to the yen advanced as the unrelenting pace of developments threatened to derail Trump administration policy prescriptions cheered by Wall Street.
“We have an environment now where we don’t speak about fiscal stimulus any more, we don’t talk about corporate tax cuts any more,” Commerzbank AG cross-asset strategist Max Kettner said in Bloomberg TV interview. The divergence between low volatility in the markets and high volatility in Washington "is unlikely to last very long," he added.
Sure enough, with the White House on the defensive, volatility gauges reflected growing anxiety among equity investors. The CBOE Volatility Index jumped more than 8 percent as of 7:53 a.m. in New York.
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View the complete article at:
https://www.bloomberg.com/news/artic...ing-to-markets
Bloomberg
by Eric Lam and Isobel Finkel
5/17/2017
Excerpt:
- Caution reigns as U.S. stock futures retreat with dollar
- Dollar erases post-election gains and volatility’s been roused
Trump's FBI Crisis Deepens in Comey Memo Allegation
The latest political turmoil in Washington has triggered a bout of risk aversion in financial markets after the extended lull of the past few weeks.
Asian equities retreated overnight, S&P 500 Index futures slipped and haven assets from gold to the yen advanced as the unrelenting pace of developments threatened to derail Trump administration policy prescriptions cheered by Wall Street.
“We have an environment now where we don’t speak about fiscal stimulus any more, we don’t talk about corporate tax cuts any more,” Commerzbank AG cross-asset strategist Max Kettner said in Bloomberg TV interview. The divergence between low volatility in the markets and high volatility in Washington "is unlikely to last very long," he added.
Sure enough, with the White House on the defensive, volatility gauges reflected growing anxiety among equity investors. The CBOE Volatility Index jumped more than 8 percent as of 7:53 a.m. in New York.
.................................................. ....
View the complete article at:
https://www.bloomberg.com/news/artic...ing-to-markets