Asian markets soared while controversy engulfed U.S. & North Korean financial sectors. Rising Chinese equities helped fuel Asia stocks as North Korea reels from a controversial presidential election. This sudden turn of events caused the won to dip. Not to be outdone, Trump has once again shaken up the U.S. financial sectors. His sudden firing of the FBI director has generated immediate backlash that was reflected in slipping stocks. The greenback also took a hit while commodities are back on the rise.
Asia Stocks Recover As Dollar Slips
In the midst of a hectic year, Hong Kong equities are fueling a comeback. Chinese companies on both sides of the border enjoyed a third day of growth. To make matters even more favorable, resurgent producer prices in China are on the rise. In just one year the producer price index increased by 6.4%. This was due to an impressive 1.2% gain in March, which exceeded expectations from investors. This welcome surprise is easing fears of deflationary pressures.
Even though Asian markets are on the rebound, there was still blowback in South Korea. A controversial presidential election is making investors think twice, causing shares to swing. Many South Koreans are worried about Moon Jae-in’s surprising victory. This culminated with fears over North Korea’s nuclear program caused the won to drop by 0.3%.
South Korea wasn’t the only country steeped in controversy, Trump has once again stolen the show. After firing FBI director Comey under suspicious circumstances, doors were opened for immediate backlash. This shocking move reversed the dollar’s 0.3% climb on Tuesday. At the end of the week the greenback lost a total of 0.2%.
The dollar wasn’t the only sector affected by Comey’s firing, U.S. stocks also experienced a sudden blow. On Tuesday S&P 500 futures started to decline, wrapping up the week with a 0.2% loss. The CBOE Volatility Index raised after Trump’s firing, reversing its lowest report since December 1993 that was published on Monday. This could be the beginning of a larger blow back, but for now investors will have to wait in suspense.
As stocks continue to recoil, commodities are making a valiant recovery. Gold continued its climb after previously gaining 0.3%. This week it gained 0.1%, putting it at $1,222.33 an ounce. Oil also enjoyed a productive week with a 0.8% rise. This left it at $46.24 a barrel, which was a welcome surprise after crude dropped 1.2% on Tuesday. Out of all the financial sectors, commodities are weathering the political turmoil the best. This positive trend will undoubtedly embolden investors, which is needed given the current tension felt all around the world.