Concern that U.S. President Donald Trump's reform agenda could be slowed down, and that Trump himself could even face the threat of impeachment, hits the dollar and spurs a pullback from richly valued stocks. David Pollard reports.
Just as he's fighting off one crisis - over sharing intelligence information with Russia - another ones come along. Donald Trump now accused of telling sacked FBI chief James Comey to end a probe into a former national security advisor. (SOUNDBITE) (German) HEAD TRADER AND STOCK MARKET STRATEGIST ODDO SEYDLER BANK, OLIVER ROTH, SAYING: "He is making one blunder after another. Investors are concerned that what was originally expected of Donald Trump might in fact never be delivered because he won't be in power long enough." Sentiment that drove European stocks down around half a per cent - the FTSE ending a nine-day winning streak. And the dollar under even more pressure - its latest dip means all gains made since Trump's election win have now been lost. (SOUNDBITE) (English) NICK PARSONS, GLOBAL HEAD FX STRATEGY, NAB, SAYING: "Investors have kind of given up on the idea of a Trump reflation trade. They've given up on major announcements on infrastructure and spending. They've given up on any further significant tax reform." Adding to the gloom is recent weakness in US data. And an awareness that China's debt - and risks elsewhere - haven't entirely gone away. SOUNDBITE (English) SENIOR FX STRATEGIST, RABOBANK, JANE FOLEY, SAYING: "From that perspective, I think whilst there has been some pretty good news in terms of the global economy this year there are still hurdles which really could falter the upside for stock markets." The White House has denied the latest accusations. But the reports raise questions over whether obstruction of justice charges could be laid against the president. And in turn, impeachment.