EUROPE MARKETS: European Stocks Drop As Trump Worries Rattle Markets

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05/17/2017 | 12:11 pm


By Carla Mozee, MarketWatch



Euro rises above $1.11 for first time in six months



European stocks fell Wednesday, keying off losses in U.S. stock futures seen as driven by political worries over U.S. President Donald Trump.



Concerns grew after The New York Times reported that Trump in February asked James Comey, then-director of the Federal Bureau of Investigation, to stop his investigation into links between Trump's associates and Russian officials .



The Stoxx Europe 600 index ) lost 0.3% to 394.74. No sector traded higher. The index on Tuesday finished slightly lower .



In the U.S., Dow Jones Industrial Average futures fell 85 points and S&P 500 futures shed 0.4%.



"Given that the 'Trump trade' is one of the main reasons the market has been able to break records of late, it is understandable that the scandal engulfing the U.S. government would be of some concern to investors," said Spreadex financial analyst Connor Campbell, in a note.



"That's because this crisis will likely prevent Trump from pushing through the very policies -- like his huge infrastructure plans and generous tax cuts -- that fueled much of the recent rally any time soon, undermining the basis for the current highs."



The euro rose to $1.1114, as the U.S. dollar lost ground against major rivals. The euro hasn't traded above $1.11 since around the time of the November U.S. presidential election.



Individual indexes: Germany's DAX 30 , which has notched record closing highs in recent sessions, was down 0.3% at 12,769.80. France's CAC 40 declined 0.5% to 5,381.80.



In London, the FTSE 100 darted between small gains and losses . Italy's FTSE MIB dropped 0.5% to 21,667, and Spain's IBEX 35 moved down 0.2% to 10,956.



Stock movers: Tullow Oil PLC (>> Tullow Oil plc) shares climbed 2.6% after the oil producer said it struck oil at a well in Kenya's South Lockihar Basin.



Thyssenkrupp AG shares (>> ThyssenKrupp AG) jumped 4% after Tata Steel Ltd. (500470.BY) moved closer to reaching a final agreement over changes to its U.K. pension liabilities. "As we view a solution on Tata's pensions as a key step in the process towards a possible deal with Thyssen, we believe this has been good news," wrote Deutsche Bank analyst Bastian Synagowitz.



British Land shares (>> British Land Company PLC) were pulled down 3.2% after the U.K. property developer posted a decline in the net value a share of its assets, pressured by falling residential, retail and office real-estate prices.



Ubisoft Entertainment SA (>> Ubisoft Entertainment) shares fell 2.6% although the maker of the upcoming "Far Cry 5" video game posted a rise in full-year profit.





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