In European Equity Markets stocks suffered their worst day since September on Wednesday as political turmoil in the United States pushed investors into safe havens following a strong run that sent regional benchmarks to record highs. The pan-European STOXX 600 fell 1.2 percent, its biggest one-day loss since end September, while euro zone blue chips fell 1.6 percent, as volatility picked up. Banks and construction sector stocks were the biggest sectoral fallers, both down around 2 percent. Ubisoft Entertainment fell 3.6 percent after it cut its mid-term sales forecast, reporting results near the bottom end of its target range after the close on Tuesday. Thyssenkrupp was up 3 percent after Tata Steel agreed the terms of a deal to cut benefits for its British pension scheme, removing a major obstacle to a potential tie-up of its steel assets with the German steel maker.

 

In Currency Markets the dollar fell to its lowest level against the yen since May 1 and hit a six-month low against the Swiss franc on Wednesday as talk that U.S. President Donald Trump could face the threat of impeachment boosted safe-haven assets. The dollar fell by as much as 1.35 percent against the yen, blowing through the 112 yen level to 111.57 yen. The dollar lost 0.5 percent against the Swiss franc, falling to its lowest since Nov. 9. The euro climbed above $1.11 overnight and hit $1.1129, its highest level since Nov. 9. It fell 1 percent against the yen as investors locked in gains after the euro reached a 13-month high of 125.815 on Tuesday. The dollar index, which tracks the U.S. currency against six peers and had scaled a 14-year peak of 103.82 on Jan. 3, fell 0.4 percent to its lowest level since Nov. 9, surrendering all of its “Trump bump” gains.

 

In Commodities Markets oil prices rose on Wednesday after U.S. government data showed a decline in domestic crude inventories and strong refining activity in the world’s largest oil consumer, ahead of next week’s meeting of major oil producers. Brent crude rose 87 cents and stood at $52.52 per barrel. U.S. light crude rose 71 cents to $49.37 a barrel. U.S. crude inventories fell by 1.8 million barrels for the week to May 12, less than the of 2.4 million barrels that had been forecast. Spot gold rose for a fifth day and was up 1.8 percent at $1,258.38 an ounce, after hitting $1.259 an ounce, the highest since May 1. Silver was 1.1 percent up at $17.01 an ounce and platinum was 1 percent higher at $946.70 an ounce. Palladium was down 1.7 percent at $780.20.

 

In US Equity Markets stocks braced for their worst day in at least two months as reports of a memo by former FBI chief James Comey suggested that President Donald Trump tried to interfere with a federal investigation, setting off alarm bells on Wall Street. The Dow Jones Industrial Average was down 1.24 percent, at 20,718.84, the S&P 500 was down 1.12 percent, at percent, at 2,373.82 and the Nasdaq Composite was down 1.61 percent, at 6,070.74. The S&P 500 financial sector fell 2.5 percent, led by losses in Bank of America and JPMorgan. Target was up 2.8 percent after the big-box retailer reported a smaller-than-expected decrease in comparable sales. AbbVie fell 2.4 percent after Coherus BioSciences received a favorable patent ruling against AbbVie’s Humira drug. Coherus shares rose nearly 7 percent.

 

In Bond Markets U.S. Treasury yields fell to three-week lows on concerns that scandals embroiling U.S. President Donald Trump would delay his bid to cut taxes and regulation and push through infrastructure spending, which boosted demand for safe-haven bonds. Benchmark 10-year notes gained 20/32 in price to yield 2.26 percent, the lowest level since April 25 and down from 2.33 percent late on Tuesday. The yield curve between two-year notes and 10-year notes flattened below 100 basis points for the first time since May 3.

 

 

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