London: Stock markets slid Wednesday after US Democrats launched formal impeachment proceedings against President Donald Trump. The dollar steadied versus the euro and yen amid renewed trade fears as Trump adopted a hard line on China.
The pound meanwhile dropped as British MPs returned to parliament one day after a momentous Supreme Court ruling that Prime Minister Boris Johnson’s decision to suspend parliament ahead of Brexit was unlawful.
“Markets have taken a bit of tumble on fears US president Trump could be impeached, while the (UK) drama… is just as intoxicating as the Brexit drama rumbles on,” noted Neil Wilson, chief market analyst at trading group ‘Markets.com’.
Focus in Europe meanwhile was on the UK Parliament after Tuesday’s Supreme Court judgement dented Boris Johnson’s authority, prompting calls for his resignation and casting further doubt on his promise to pull Britain out of the European Union, October 31, come what may.
Concerns over US and British political turmoil added to worries over international trade after Donald Trump ripped into China at the United Nations, declaring that the time of Beijing’s ‘abuses’ of the system was ‘over’.
Oil prices took their own hit, also after data indicated a build-up in US crude inventories.
“Oil markets continue to sell as risk sentiment remains sour after Trump accused China of currency manipulation, theft of intellectual property and product dumping,” said Stephen Innes, Asia Pacific market strategist at ‘AxiTrader’.
AFP