Worries about political turmoil in the United States led investors to sell shares on Wednesday. The dollar also lost value against other currencies.
International stock markets fell along with the dollar on Wednesday as investors were spooked by the turmoil surrounding President Trump.
Since he moved into the White House stock markets have rallied but now there is too much uncertainty for their risk appetite and the latest developments cast a shadow over Trump’s proposed business-friendly policies such as tax cuts and less financial regulation.
Bank shares were among the biggest losers, with the sector down two percent. Same story for the construction industry.
Analyst Oliver Roth with Odd Seydler Bank in Frankfurt said: “There is some concern as to how the US leadership will continue as Donald Trump is increasingly coming under pressure in the United States. He is making one blunder after another so investors are concerned that what was originally expected of Donald Trump and which he hasn’t yet delivered might in fact never be delivered because he won’t be in power long enough.”
London was one of the least effected stock markets on Wednesday, down just 0.25 percent but elsewhere in Europe share indexes were deep in the red.
The pan-European STOXX 600 fell 1.2 percent, its biggest one-day loss since the end of September 2016. Milan was the index of top shares worst losing 2.3 percent.
As they sold shares traders bought traditional safe-haven investments, like the Japanese yen and gold which hit its best price in two weeks.