The ongoing crisis in the white house is hurting markets sentiment.
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. More White House drama
Michael Flynn and other advisers to Donald Trump’s campaign were in contact with Russian officials and others with Kremlin ties in at least 18 calls and emails during the last seven months of the 2016 presidential race, according to a new report, citing current and former U.S. officials familiar with the exchanges.
That was only the latest worry in a tumultuous week at the White House, which included allegations that the president tried to interfere with a federal investigation and shared classified information with Russia's foreign minister.
The Justice Department on Wednesday appointed former FBI director Robert Mueller as special counsel to take over the investigation of Russia's alleged interference in the U.S. presidential election.
The recent string of controversies intensified doubts that Trump would be able to follow through on his campaign promises for tax cuts, deregulation and fiscal stimulus.
2. Dollar struggles to recover
The dollar remained near six-month lows against a basket of major currencies on Thursday, struggling to recover from its worst losses in almost a year against the yen and the euro as worries over the Trump presidency weigh.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up less than 0.2% at 97.52 by 09:55 GMT. It slid to an overnight low of 97.28, levels last seen in the immediate aftermath of Trump's surprise victory in November.
USD/JPY fell to a three-week low of 110.30, before bouncing back slightly to 110.35 yen, down more than 0.4%. Meanwhile, the Euro hit a six-month high of 1.1172 against the greenback, and last stood at 1.1120.
3. Global stocks extend losses
Global stock markets were under pressure for a second consecutive session on Thursday, amid concerns over the scope of an investigation of U.S. President Donald Trump's ties to Russia.
Most Asian indexes closed in negative territory, with Japan's Nikkei ending down around 1.3%, while China's Shanghai Composite shed about 0.5%.
In Europe, stocks across the continent suffered for the second day in a row, with Germany's DAX down around 1% in mid-morning trade, while London's FTSE 100 slumped 1.5%.
On Wall Street, the blue-chip Dow futures pointed to a loss of 120 points, or around 0.6% at the open, the S&P 500 futures dipped 12 points, while the tech-heavy Nasdaq 100 futures lost 27 points.
There are a couple of economic reports Thursday, including weekly jobless claims and the Philadelphia Fed survey both due at 12:30 GMT.
Odds for a June rate hike have fallen sharply in recent days as political turmoil and a string of soft data saw investors temper expectations for more rate hikes.
4. GBP at 8-months high, Oil drops
The British pound (GBP) rose above the 1.30-level against the USD for the first time since September 2016, following a better-than-expected reading on U.K. retail sales.
The upbeat data contrasted with weaker economic reports so far this year, as the steep drop in sterling since last year’s Brexit vote drove up impost costs, leading to rising inflation.
Oil prices slumped on Thursday, as the market weighed rising U.S. shale production against ongoing efforts by major producers to cut output to reduce a global glut.
U.S. crude was at $48.18 a barrel, down 90 cents, or around 1.8%, while Brent lost 97 cents to $51.24.
The U.S. Energy Information Administration said Wednesday that crude oil inventories fell by 1.8 million barrels in the week ended May 12, the sixth weekly decline in a row.
However, the drawdown came in below expectations for a drop of 2.3 million barrels, underlining the view that an ongoing rebound in U.S. shale production is derailing efforts by other major producers to rebalance global oil supply and demand.
