US Political turmoil to drag Europe Lower Today

european, trump, politicsUS political turmoil is expected to drag the markets in Europe lower on Thursday. There is growing political uncertainty in the states and mounting investor concern as to whether President Donald Trump will now be be able to deliver on key pro-growth fiscal policies.

As of 7:00 am London time, stock futures in London are down 30 points. In Germany, futures are down 46 points and in France, futures are sixteen points lower.

At this point, it is well known that the political drama in Washington worsened overnight. There are now reports surfacing that Trump pressed fired FBI Director James Comey to drop a probe into former National Security Advisor Michael Flynn. The White House has vehemently denied this accusation.

The newest development in this unfolding saga, now sees former FBI Director Robert Mueller as  now being recruited, by the US Justice Department, as a special counsel. Hi job will be to oversee a federal investigation into alleged Russian interference during the presidential election. This news only heightened investor worries around the globe.

Europe also eyes Corporate Earnings

On the corporate earnings schedule, today in Europe, Merck, Prudential and Thomas Cook are all on the schedule to release first quarter results.

Today in France, the country will hold a cabinet meeting of its newly appointed government at around 10:00 am London time. The support for President Emmanuel Macron’s centrist party is growing ahead of legislative elections in June. This is seen as increasing the likelihood the new president can secure parliamentary support for his reform plans.

In other European news. European Union foreign secretaries are meeting in Brussels later today to discuss NATO cooperation. They will also be discussing security and defense.

David Frank

David Frank

Chief Market Strategist at CupO'Forex
David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.
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