Tillerson sacking pushes stock markets lower, USD follows
By Content-mgr - on March 13, 2018U.S. stock index futures trimmed early gains on Tuesday after U.S. President Donald Trump ousted Secretary of State Rex Tillerson.
“Mike Pompeo, Director of the CIA, will become our new Secretary of State. He will do a fantastic job! Thank you to Rex Tillerson for his service!” has twitted President of USA sending markets down. Stock markets move lower after Tillerson sacking but there is also a US inflation figures for February that definitely play a role.
In currencies, the dollar index, a measure of the greenback against a basket of peers, reversed course into negative territory after President Trump’s announcement. The yen pared losses to stand 0.5% lower at ¥106.90 per dollar and the pound was up 0.3% at $1.3949. The euro was 0.3% firmer at $1.2365.
US inflation figures for February rise 0.2% as expected before. While investors may have been whipsawed by January’s employment situation report, which showed a surprise jump in wage inflation, that is not translating into consumer price inflation. A 2.2% year-on-year rise, up from 2.1% in January, was also as forecast. The US Federal Reserve targets a 2% inflation rate and policymakers next meet on March 20 when they are expected to lift interest rates.
Stock exchanges: European bourses shift lower and gains for US futures trimmed. Frankfurt’s Dax index has edged down 0.2%, London’s FTSE 100 is off 0.4%, the pan-European Euro Stoxx 600 is down 0.2%
Brent trading under $65 a barrel. Oil prices dipped after falling in the previous session on concerns that growing US shale output could undermine efforts by Opec and its allies to cut production. US marker West Texas Intermediate was down 0.6% at $60.98 a barrel after retreating 1.1% on Monday. Brent crude slipped 0.3% to $64.76 a barrel after shedding 0.8% in the previous session.
Sources:
https://www.ft.com/content/1736cba0-2663-11e8-b27e-cc62a39d57a0
https://www.ft.com/content/1736cba0-2663-11e8-b27e-cc62a39d57a0
https://www.investing.com/news/economy-news/top-5-things-to-know-in-the-market-on-tuesday-1338417
https://www.fxstreet.com/currencies/gbpusd
https://www.fxstreet.com/currencies/usdjpy
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