Political Risk Jitters

Bloomberg News said Robert Mueller, the special prosecutor looking into claims Trump’s campaign worked with Moscow to sway the presidential election, would look into past transactions involving the tycoon’s firms and Russians in the past.

“Just last week President Trump said expanding the investigation beyond Russia would be out of bounds so with Mueller broadening the Inquisition into Trump’s business dealings, US political risk could move to whole new level as this foxtrot plays out,” said Stephen Innes, senior trader at OANDA.

Most Asian equity markets slipped into the red on Friday, with profit-taking also acting as a drag after a healthy July so far.

Tokyo was down 0.3 percent by the break, Hong Kong slipped 0.1 percent by the break after a nine-day rally, while Shanghai slipped 0.2 percent.

Sydney eased 0.8 percent, Seoul was flat and Taipei shed 0.5 percent, while Manila and Jakarta also retreated.

But while the investigation continues to drag on market sentiment, upbeat earnings and a positive global economic outlook have kept investors broadly upbeat, with all three main New York indexes sitting around record highs.

AFP

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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