Markets worries as the resignation of Gary Cohn means the White House has lost a strong free-trade proponent.
President Trump’s resolve to further engage in trade protectionism and the prospect of trade wars that might follow have supressed European and Asian stock markets.
The dollar dropped, and stock index futures slumped. Most commodities retreated in fear of a possible trade war. Bonds, however, were the winners across Europe and the yen rose to its strongest level in almost 16 months.
Resignation of Gary Cohn, Trump’s economic advisor and a strong supporter of free trade, added to the general negative outlook. Cohn’s departure now threatens to accelerate the White House’s trade-protectionism course.
Now investors are watching with trepidation whether the Trump administration will clamp down on Chinese investments in the U.S.
and impose trading tariffs on Chinese imports as a retaliation for China’s theft of intellectual property.
There are also concerns about how exactly the issue of steel and aluminium tariffs will be handles, and what the results of NAFTA and US – Korea trade negotiations will be.
Read the full story in Bloomberg