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Bloomberg
US stock futures slipped and the dollar’s rally faltered after Donald Trump fired FBI Director James Comey. Oil climbed following an industry report that showed American stockpiles declining for a fifth week.
The greenback headed for the first drop in three days in the wake of Trump’s move, and after Federal Reserve Bank of Dallas President Robert Kaplan cast doubt on the pace of rate hikes in the world’s biggest economy. Treasuries advanced, while gold ended the longest run of losses since October. Europe’s Stoxx 600 Index struggled for direction, with Roche Holding AG the biggest laggard after a cancer drug failed in a late-stage clinical trial.
The weakness across most markets comes in the wake of gains that sent global stocks to a record. Trump’s dismissal of Comey may threaten to undermine his administration as it attempts to move tax and spending plans through Congress, just as political risks ease in Europe and corporate earnings suggest the global economy is on the mend.
“All in all, this does not support the view that the US Trumpflation trade faces an easy road ahead of it,†Michael Every, head of financial markets research at Rabobank Group in Hong Kong, wrote in a note. “It underlines that real surprises can pop up out of the box at any time right now.â€
Earnings are expected from companies including Deutsche Telekom AG and Snap Inc. Toyota Motor Corp. and SoftBank Group Corp. posted results after the close of Japanese markets. The Bank of England on Thursday publishes its interest-rate decision and quarterly Inflation Report.
The Stoxx Europe 600 was little changed as of 8:15 a.m. in New York, after climbing 0.5 percent on Tuesday to the highest since August 2015. S&P 500 futures dropped 0.2 percent. The Bloomberg Dollar Spot Index lost 0.2 percent after climbing 0.4 percent on Tuesday. The euro was little changed at $1.0878, while the pound gained 0.2 percent to $1.2954. The yield on 10-year Treasury notes fell two basis points to 2.38 percent. Benchmark German yields dropped two basis points to 0.4 percent, while French yields were down three basis points.