Russia tie rumours threaten Trump equities rally

Joshua Mahony MSTA Scope Markets

• Russian fears drive dollar weakness
• Philly Fed hits 6-year high
• Ex-dividend stocks drag on FTSE

Growing concerns about contact between President Trump’s team and Russia ahead of last November’s election has tempered the rally in global stock markets today, with the FTSE dropping back a little. A drop in the US dollar is a sign that markets are growing increasingly worried over whether any notable link can be found between Russian intelligence agencies and the Trump campaign team.

There were a handful of economic releases from the US, and the new president will be particularly glad to see signs of a sharp improvement in the manufacturing sector, with the Philly Fed manufacturing index hitting its highest level in six years.

Commodity stocks were a significant drag on the FTSE today, with the likes of Antofagasta and BP always fighting a losing battle after they went ex-dividend. This means their latest dividend payment was subtracted from their market value. The rise in the pound, as the market uncertainty weighed on the US dollar, also dragged on the FTSE.

Author

Joshua Mahony MSTA

Scope Markets

Joshua Mahony is Chief Markets Analyst at Scope Markets. Joshua has a particular focus on macro-economics and technical analysis, built up over his 11 years of experience as a market analyst across three brokers.

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