Global stocks edge up, dollar suffers worst week in year amid Trump’s own Watergate
The U.S. dollar fell and was poised for its worst week in more than a year while world stock markets edged up on Friday amid some calm following declines earlier in the week spurred by uncertainty relating to Donald Trump’s U.S. presidency.
On Wall Street, key stock indexes climbed, led by energy shares. The S&P energy index was up 1.1 percent along with a jump in oil prices.
The U.S. dollar slipped 0.7 percent on Friday and was down about 2 percent for the week, its worst week since April 2016. Besides worries surrounding Trump, the U.S. currency has suffered from a resurgent euro, which has gained more than 2 percent this week.
“The dollar overall, across the board, has been getting beat up this week and a lot of that has to do with the political risk here in DC,” said John Doyle, director of markets at Tempus Inc in Washington. “While we saw a little bit of a reprieve yesterday, we’re right back on that dollar weakness train.”
It has been the most eventful week of the year so far for investors, with leading world equity markets scaling record highs and then plunging in one of the sharpest cross-asset routs in years.
Triggering the move was uproar over Trump’s firing of FBI director James Comey and allegations he pressed Comey to stop investigating his former national security chief and other officials’ alleged ties with Russia. Investors have been concerned the allegations could delay tax cuts and increased spending, pro-growth efforts touted by Trump during his election campaign.
There was also been worry that any political damage could hamper Trump’s chances of getting his promised fiscal stimulus – which has spurred markets higher since November – through Congress.
The Dow Jones Industrial Average was up 115.62 points, or 0.56 percent, AT 20,778.64, the S&P 500 gained 17.23 points, or 0.73 percent, to 2,382.95 and the Nasdaq Composite added 42.85 points, or 0.71 percent, to 6,097.98.