Cohn desicion to resign as Trump’s Top Economic Advisor sends markets down in hours
By Content-mgr - on March 7, 2018Gary Cohn, Donald Trump’s top economic adviser, has resigned after losing a heated White House battle over tariffs, dealing a big blow to Washington Republicans and business leaders seeking to prevent the president from igniting a global trade war.
Stock prices and the dollar remained lower as markets considered the implications, with the S&P 500 off 1.2% in after-hours trading in New York. Bond prices also strengthened, a signal of demand for safe assets, while equities also fell in Asia and Europe.
Cohn comes from Wall street and certainly large institutional investors felt he was very credible in his spot, but after the fierce fight withing White House economy team regarding aluminium and steel tarrifs issue, the first loss has been on the side of moderates. He was a main driver of a sweeping tax overhaul passed by Congress in December and signed into law by Trump as well.
Asian shares ended broadly lower, with losses in the region led by Japan’s benchmark Nikkei, which ended down about 0.8%.
In Europe, nearly all the continent’s major bourses traded in negative territory, with the pan-European Stoxx 600 index, the region’s broadest measure of share prices, falling around 0.5%, with most sectors in the red.
On Wall Street, U.S. stock futures pointed to a sharply lower open. Dow futures were down 320 points, or 1.3%, from their Tuesday close, while S&P 500 futures S&P 500 lost 28 points, or 1%, and Nasdaq 100 futures declined 66 points, or roughly 1%.
Sources:
https://www.ft.com/content/56e349a2-2192-11e8-a895-1ba1f72c2c11
https://www.investing.com/news/economy-news/top-5-things-to-know-in-the-market-on-wednesday-1328817
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