There are lots of ups and downs going on in the US based on the political confusion happening due to President Donald Trump’s decision of asking FBI Director James Comey to stop any kind of investigation against Michael Flynn –who was the former National Security advisor during Trump’s Presidential election. There are a lot of doubts rising these days from the investors end against the Presidential abilities of Donald Trump to shove through the aggressive motivational incentive program which could be very beneficial to the investors. There are chances that Trump fight face charges for arranging obstruction in the judicial work which would ultimately weaken their confidence.
Political instabilities are impacting the stock market recently leading to huge fluctuations in the share prices of the financial commodities. Earlier these were worries associated with the political situation in the European nation after the BREXIT and Canada planning to move out of the European nation and also issues in North Korea. But these worries are shifted to the US and Trump administrations. Allegations were against the former National Security Advisor– Michael Flynn for disclosing very sensitive information to the Russia’s ambassador, Sergei Kislyak during their meeting last year.
Stock market prices fluctuate over Trump’s decision and the dollar hit a downfall on Wednesday.
S&P 500 mini futures ESc1, which is considered to be one of the most liquid funds, fell down by 0.5 percent closing at 2,385; however, they managed to close better than their recent lowest downfall of 2,379. The situation seems to be similar for European Shares which are expected to lower down by 0.6 percent for GDAXI of Germany, Britain’s FTSE is expected to decline by 0.2 percent and France’s CAC is expected to decline by 0.4 percent. In fact, the broadest index of Asia-Pacific shares outside Japan– MSCI’s broadest index reduced by 0.3 percent and Japan’s own index Nikkei i.e. N225 declined by 0.5 percent.
After the speculations of the decline in the market due to political instability, investors preferred investing in Yen against Dollar which is considered to be one of the safest options. This led to dollar dropping by 0.7 percent against Yen and the price reduced to 112.37 Yen compared to their highest record of 114.40 Yen during last week. All thanks to fluctuations in the US and the Europe, people have shifted their preferences to other safe options like Swiss Franc, and Gold. Swiss Franc inclined by 0.3 percent against dollar closing at 0.9828 franc-dollar and gold increased by 0.6 percent closing at $1,243.4 per ounce.