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Shares, dollar lick wounds as Trump rout eases

Friday, May 19, 2017 - 01:49

Asian and European shares eased back from their slide on Friday, but along with the dollar were still heading for major losses as worries persisted over the future of Donald Trump and his economic stimulus plans. David Pollard reports.

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BROADCAST AND DIGITAL RESTRICTIONS~NONE** Broadcasters: Digital: NONE**~ He denies collusion with Russia. And dismisses claims he wanted a probe into a disgraced national security advisor dropped. For Donald Trump, it is, he says, a 'witch hunt'. And as for talk of impeachment: (SOUNDBITE) (English) U.S. PRESIDENT DONALD TRUMP SAYING: "I think it's totally ridiculous. Everybody thinks so ..." But for markets, the Trump spell is clearly broken. Despite some respite on Friday, most ending the week deep in the red. Tokyo's Nikkei: heading for a 1.8 per cent loss. Australian shares, down two per cent. The dollar set for a 1.7 percent fall. (SOUNDBITE) (English) JEREMY STRETCH, HEAD OF G10 FX STRATEGY, CIBC, SAYING: "That does underline that markets will remain uncertain ... I think it is going to be a case of more firefighting from the from the White House and not necessarily pushing on with the agenda that markets would wish to pursue." And emerging markets stocks braced for worse as Brazil's corruption scandal lurched on. MSCI's EMs index slumped two percent on Thursday. (SOUNDBITE) (English) JEREMY STRETCH, HEAD OF G10 FX STRATEGY, CIBC, SAYING: "Political instability is now once again back on the forefront and unfortunately that really suggests that Brazilian assets will remain under pressure." For Europe there was a sense of stability returning - at least to Greece. A vote in parliament for more austerity reforms sparked violent protest. It may though put the possibility of bailout funds back on track. The pan-European STOXX 600 offsetting its weekly loss with a rise of nearly half a per cent. (SOUNDBITE) (English) JEREMY STRETCH, HEAD OF G10 FX STRATEGY, CIBC, SAYING: "Those influences of the austerity cuts, clearly it is hugely problematic. But from a macro perspective, I think markets shouldn't necessarily be overtly concerned about Greece once again come this summer. Greece is a containable issue ..." But the mood dominated still by the US. After Wall Street's biggest sell-off in eight months, how much downside could still be to come ... As Trump's critics vowed to push on with what they called 'a truth hunt'.

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Shares, dollar lick wounds as Trump rout eases

Friday, May 19, 2017 - 01:49