Wednesday’s market wrap: Cohn resignation triggers stock sell-off

by | 7 Mar, 2018

Worries that Trump will replace Cohn with a more hawkish adviser on trade are rising

President Trump’s Chief Economic Adviser Gary Cohn has resigned from his post and that’s making investors worry.

The 57 year-old Goldman Sachs alumni was seen by many as a moderate voice in the White House who would stand up to Trump’s more radical policy proposals, but with him gone, the decision to impose aluminium and steel tariffs is likely to go ahead with even less opposition.

Cohn is understood to have quit due to Trump’s reluctance to compromise on the issue. Trump’s aide Hope Hicks also quit 6 days ago, which seems to corroborate the stories from major news outlets describing the situation in the White House as chaotic – accusations which the President has repeatedly denied.

U.S. stock futures are pointing to a dip in the markets when they open later due to fears over what this could mean for global trade.

Asia-Pacific stocks were broadly lower this Wednesday. The FTSE Hong Kong Index and ASX200 fell furthest, by 1.17 percent and 1.01 percent each. The Korean KOSPI which rallied yesterday after a breakthrough in North Korean relations fell 0.40 percent today, but there was a big rebound for Samsung Electronics which notched a +3.40 percent gain.

The jitters in Asian equities also spread to Europe off the back of the Cohn resignation news – all the major indices except the FTSE100 are lower. In stocks today, Invstr members should look out for earnings from Costco Wholesale (at roughly 11:15AM ET) and Dollar Tree, who report before U.S. markets open.

The FTSE Hong Kong Index, India’s NIFTY50, Shanghai’s SSE Composite, France’s CAC40 and Germany’s Bats-DE30 slide Wednesday

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

 

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