Oil and global stocks fall amid Trump`s administration turmoil

The oil price fall followed weakness in global financial markets after the resignation of Gary Cohn, economic adviser to U.S. President Donald Trump, seen as a bulwark against protectionist forces in the government. Obviously, the worst outcome for financial markets, in terms of potential to create volatility, would be a confirmation of rising trade friction and benign neglect of the dollar in the short term.

The result of Trump`s games within administration is clear though – with the announcement that Cohn was resigning, the S&P futures market dropped and oil went with it down further.

Brent Oil futures slipped 32 cents to $64.47 a barrel by 1232 GMT, while U.S. crude futures fell 33 cents to $62.27, although both contracts had eased off their lows in line with a recovery in S&P futures. Copper on the London Metal Exchange lost 1.2%, paring a 1.4% gain from the previous session.

The dollar was off 0.4% against the yen to ¥105.76. Bond markets also benefited with the yield on the benchmark 10-year Treasury slipping, in a further sign of investors seeking safe assets.

The Dow was down 300 points at the open. MSCI’s world equity index, which tracks shares in 47 countries, was down 0.2%, having seen some strength in Asian trading following news that South and North Korea would hold their first summit in more than a decade.

Sources: 

https://www.fxstreet.com/news

https://www.ft.com/content/7a5f7236-1d94-11e8-aaca-4574d7dabfb6

https://www.ft.com/content/3bbf66ac-21d7-11e8-add1-0e8958b189ea

https://www.ft.com/content/71629a08-215b-11e8-a895-1ba1f72c2c11

https://www.ft.com/content/a5075e36-219a-11e8-a895-1ba1f72c2c11

https://www.investing.com/news/commodities-news/oil-prices-fall-as-cohn-departure-raises-trade-war-fears-1328505

https://www.investing.com/news/stock-market-news/global-stocks-fall-as-key-trump-advisers-departure-heightens-trade-war-fears-1328403