United States stocks recede as Trump's policy agenda at risk of crumbling

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Earlier on Wednesday, a group of top business leaders in Trump's Strategic and Policy Forum made a decision to disband following the president's combative press conference Tuesday. The overall financials group declined 0.7 per cent.

"While this mini correction we're seeing may not amount to much, it's probably caused by this escalation in doubt of all of these things that seemed hopeful to investors at the beginning of the Trump administration", said J. Bryant Evan, investment advisor and portfolio manager at Cozad Asset Management, in Champaign, Illinois.

The pan-European FTSEurofirst 300 index lost 0.59 percent and MSCI's gauge of stocks across the globe shed 0.48 percent.

Dow Jones closed down by 0.35 percent, S&P 500 ended down by 0.19 percent, Nasdaq finished the day down by 0.09 percent. The market sees a two-in-three chance of another hike in October, overnight index swaps figures show, little changed from before the inflation data.

How does Gary Cohn, the director of Donald Trump's National Economic Council, feel about working for a president who is expressing sympathy for the grievances of the white supremacists that marched in Charlottesville, Virginia, last weekend?

The report said industrial production edged up by 0.2 percent in July after climbing by 0.4 percent in June. The dollar finished the week up nominally against the yen, gaining 0.1 percent. Against the euro, the dollar is valued at $1.1741 compared to yesterday's $1.1723.

Gold was nearly flat at $1,287.67 an ounce. Trump, for example, has in the past mocked Republicans for raising the debt ceiling, but many Wall Street executives say failing to do so could lead to a stock market crash and a recession.


The market had been on edge since last week after tensions between the United States and North Korea flared up, with nuclear-armed Pyongyang threatening to fire missiles near the U.S. Pacific island territory of Guam.

The dollar index rose 0.06 percent, with the euro down 0.22 percent to $1.1742, after hitting a three-week low following news of concern about its gains from within the European Central Bank. Miners also succumbed to selling pressure, with Forescue Metals Group and BHP Billiton losing 1-2 percent, as base metal prices edged down from multi-year highs.

The Bloomberg Dollar Spot Index was down less than 0.1 per cent.

Shares of Gap (GPS) are also seeing pre-market strength after the apparel reported second quarter results that beat estimates and raised its full-year forecast.

The euro edged up 0.2 percent against the dollar, after tumbling on Thursday to a three-week low of $1.1662 after minutes of the European Central Bank's July 20 policy meeting showed the bank was anxious about the currency rising too much.

Moreover, " when, in August, the market share in one direction, it is complicated to stop it, because the low volume of trade tends to exaggerate the trends", he added.

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