Ever since Mr. Trump has made debut as the president of United States, the global markets are witnessing volatility.
The US stock markets have surged around 10% after since election. The surge has been on the expectation of lower tax rates and higher infrastructure spending in United States. Global markets have been taking cues from the US markets and have traded on a positive note.
However, this Wednesday the US stock market was down 372 points. The global markets followed the suit and Asian markets were down around 1.5%. In fact, the Indian stock market also closed down around 0.7% on Thursday.
The political instability Trump has bought in United States is something known to everyone. However, things are getting worse with every passing day and markets have started reacting to the same.
The white house on 9th May 2017 interfered in the proceedings of FBI and sacked FBI-director James Comey. This has created nothing less than frenzy in the global stock markets.
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US stock markets reacted negatively when ex-FBI director wrote a memo outlining a conversation in which Trump allegedly asked him to halt an investigation into former National Security adviser Michael Flynn.
Michael T Flynn, who had campaigned for Trump in these elections, was under investigation for his financial ties with Russia and Turkey.
The event has put a dent on the Trump regime. The financial markets which cheered the US tax reforms and boost in domestic businesses are witnessing sell off.
Trump's much-awaited tax reform proposals failed to impress markets, even as many of his political moves dented investor confidence on the new regime.
The latest controversy is widely expected to do further damage to financial markets, the first signs of which were evident in the slump in US stocks and the US dollar and a spike in US treasury.
That said, any global sell off impacting the Indian stock market can be an opportunity to act on high quality safe stocks which are currently trading at their life time high valuations.
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