The financial markets can't seem to "let this go."
Financial markets are under pressure on Wednesday following a report that President Donald Trump asked James Comey, then the FBI director, to drop an investigation into former national security adviser Michael Flynn in February.
US stock futures are indicating a lower open for trading. S&P 500 futures are down by 9 points, or 0.39%, at 7:32 a.m. ET. Dow futures are down by 76 points (0.37%).
The US dollar's losses are deepening, and the currency's index is at its lowest level since late October, before the US election that spurred its rally to a 14-year high.
Major stock indexes in Asia and Europe are also trading lower. The Topix in Tokyo is down by 0.5%, pressured by the stronger yen. Australia's ASX 200 is also down by about 1.1%, a stark turnaround in fortunes given SPI futures were indicating a flat start to trade.
The latest news "merely add fuel to the existing fires of political uncertainty," with "apparent White House incoherence slowly sapping faith in stimulus policies getting even partisan approval," Mike van Dulken, the head of research at Accendo Markets, said in a note.
Haven assets are the exception to market weakness.
The Japanese yen is up by 0.6%, trading at 112.42 against the US dollar, while gold is up by 0.8%, sitting at $1,246.52 an ounce.
According to The New York Times, Comey while kept records of interactions he had with Trump while FBI director that he deemed "improper efforts to influence an ongoing investigation."
Comey’s memo as reported by The Times said that in one meeting the president asked him to drop the FBI's investigation of Flynn.
"He is a good guy," Trump reportedly Comey. "I hope you can let this go."
In the absence of any major economic data, this could be the story that dominates markets Wednesday.
The financial markets can't seem to "let this go." Read Full Story
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