Published: Fri, May 19, 2017
Markets | By Noel Gibbs

Stocks, bond yields drop Washington turmoil rattles markets

Stocks, bond yields drop Washington turmoil rattles markets

"If Donald Trump resigned tomorrow, I think the Dow would go up 1,000 points", the University of Pennsylvania Wharton School of Business professor said in a CNBC interview, following a downdraft for USA stocks that resulted in the Dow Jones Industrial Average DJIA, -1.78% and the S&P 500 index's SPX, -1.82% worst single-session selloff since September 9, as the Nasdaq Composite Index COMP, -2.57% the market's proxy for risk appetite on the Street, registered its ugliest one-session slump since June 24, the day after the U.K.'s vote to leave the European Union roiled global markets.

Asian markets followed their USA counterparts into the red amid an increasingly chaotic political backdrop in D.C. In Japan, a surging yen overshadowed a better-than-expected reading on first-quarter gross domestic product (GDP), sending the Nikkei down 1.3%. Stocks are opening lower on Wall Street as banks and industrial companies fall. The S&P 500 financial sector sank 2.5 percent, led by losses in Bank of America and JPMorgan.

Canada's main stock index fell on Wednesday, tracking global market concerns that Mr. Trump's pro-business economic agenda could be slowed by political scandals, with financial stocks leading declines. In other futures trading, natural gas fell 4 cents to $3.19 per 1,000 cubic feet.

STRONG QUARTER: Target gained 1.8 percent after the retailer posted surprisingly strong earnings for the first quarter.

At 12:07 p.m. ET (1607 GMT), the Dow Jones Industrial Average was down 260.91 points, or 1.24 percent, at 20,718.84, the S&P 500 was down 26.85 points, or 1.12 percent, at6 percent, at 2,373.82 and the Nasdaq Composite was down 99.13 points, or 1.61 percent, at 6,070.74.

Statue of General Lee coming down in New Orleans on Friday
Of the four monuments, Lee's was easily the most prominent, with the bronze statue alone being close to 20 feet tall. Work began soon after sundown and news outlets showed the statue being lifted off its base shortly after 3 a.m.

The tech-heavy Nasdaq Composite plunged 2.57 percent to 6,011.24.

The Bloomberg Dollar Spot Index dropped 0.2 percent as of 8:28 NY, trading at the lowest level since November 8.

Building products supplier James Hardie fell 7.8 per cent to $19.90 despite a 13 per cent rise in its annual profit.

Upbeat growth prospects and signs of stronger integration also spurred flows into regional bond markets, narrowing the gap between USA and German government borrowing costs to its tightest level in over six months. The dollar strengthened to 111.17 yen from 110.82 yen.

"The dollar fared no better; it slid 1.4 per cent against the Japanese yen and 0.3 per cent against the pound, while remaining at a six-month low against the euro".

Obama's Russia Ambassador Doubts Sally Yates' Blackmail Claim About Michael Flynn
The former director of national intelligence testified he's hadn't, but also said he hadn't been aware of the FBI investigation. He went on to say that Yates was not excited about Trump taking office before getting interrupted by a reporter.

The Comey revelations came on the heels of widespread criticism of Trump for allegedly disclosing highly sensitive intelligence to Russian officials last week.

The pound rose above 1.30 against the United States dollar for the first time since September, as strong UK retail sales gave a boost to sterling and jitters surrounding calls for Donald Trump's impeachment weighed on the greenback.

The MSCI All-Country World Index lost 1.2 percent from a record, with banks having the biggest impact across all regions. Spot prices added as much as 1.9 percent to a two-week high of $1,260.38 an ounce. Dow futures fell more than 100 points earlier on Thursday.

OIL: Benchmark U.S. crude was up 45 cents, or 0.9 percent, at $49.11 per barrel in NY. Hong Kong's Hang Seng index slipped 0.2 percent.

Japan's Nikkei 225 dropped 0.5%, while South Korea's Kospi dipped 0.1%.

Oil prices fall further amid oversupply fears
The benchmarks are trading around levels last seen before the joint deal to cut output was announced by OPEC and non-OPEC states. The contract lost $2.30, or 4.8 percent, to settle at $45.52 a barrel on Thursday.

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