US stock futures and the dollar dropped on Wednesday due to growing concerns over whether US President Donald Trump will be able to push forward with his pro-agenda.
S&P 500 Futures which is the world’s most liquid stock futures for the June contract lost 0.5 percent to $2,383 while Nasdaq 100 Futures for the same month contract also slipped 0.5 percent to $5,695.
NYSE Composite (NYA) closed on Tuesday 0.07 percent short to $11,606.
Dow Jones Industrial Average (DJI) finished on Tuesday 0.01 percent down to $20,979.75 while the NASDAQ Composite (IXIC) ended its session with a 0.3 percent gain to $6,169.87.
The US Dollar Index (DXY) slipped 0.2 percent to $97.96.
The dollar was also weaker losing 0.6 percent to ¥112.38 falling further from its recorded highs last week of about ¥114.40.
Trump to Comey
According to a memo written by former FBI director James B. Comey, President Donald Trump had asked Comey to put an end to the federal investigation into White House’s former national security adviser Michael T. Flynn and his ties with Russia.
The news came out after President Trump had fired Comey and then had a discussion about top secret information regarding the Islamic State with Russian Foreign Minister Sergei Lavrov.
Democrats were not pleased about the news, quickly saying that Trump was guilty of obstructing justice and causing major concern from the President’s Republican allies on Capitol Hill as well.
The White House immediately denied the said report saying in a statement that an exchange did not took place and that it was not an honest or precise description of the discussion between the President and Comey.
A White House official stated that while the President had constantly expressed his view that General Flynn is a respectable man who served and protected the US, the President has never asked Comey or anyone else to end any investigation including any investigation involving General Flynn.
The uproar drove currency trader to walk out on the dollar against a wide array of currencies, most especially against the yen to which investors regularly resort to as a safe-haven whenever crisis takes place in Europe and the United States.
On the other hand, gold which is another safe-haven of investors gained 0.6 percent to $1,244 on Wednesday.
European shares opened lower on Wednesday as well with Britain’s FTSE 100 (FTSE) edging down 0.1 percent to £7,514.
Germany’s DAX (GDAXI) tumbled by 0.3 percent to €12,768 whereas France’s CAC 40 (FCHI) lost 0.5 percent to €5,375. CAC 40 Futures also fell 0.6 percent to €5,329.
The Euro Stoxx 50 (STOXX50E) was down 0.4 percent to €3,625.
Asian shares closed the session with weaker performance with MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.4 percent to $494.58 while Japan’s Nikkei 225 (N225) closed 0.5 percent lower to ¥19,814.
South Korea’s KOSPI (KS11) dipped 0.1 percent to ₩2,293. Hong Kong’s Hang Seng (HSI) stumbled by 0.1 percent as well to HK$25,293.63.
Shanghai Composite (SSEC) lost 0.2 percent to CN¥ 3,104.74 while Australia’s S&P/ASX 200 (AXJO) went down 1.1 percent to AU$5,786.03.
The dollar is currently on the downside on Wednesday and with growing concerns involving President Trump it is likely to continue dragging the US dollar therefore advising investors to seek for safe-haven assets.