US 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
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.