Democrats open impeachment enquiry into Donald Trump, Asian shares plunge

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Democrats open impeachment enquiry into Donald Trump, Asian shares plunge

On Tuesday, 24th September, the United States’ House of Representatives led by speaker Nancy Pelosi declared that an impeachment enquiry would be opened on President Donald Trump. On Wednesday, 25th September, international stock markets showed the brunt of this move by cascading down severely.

The Australian share market was down by around 0.60 per cent, while Nikkei, the Japanese stock market, shed around 0.63 per cent in its value. MSCI’s indices for the Asia-Pacific region took a hit of about 0.82 per cent.

Even as Trump received the news about his impeachment enquiry, the 73-year-old took stabs at China, accusing the country of unfair trade policies again. Trump’s statements came at the United Nations General Assembly (UNGC) that is ongoing in New York.

Trump’s comments came as a surprise since the American treasury secretary Steve Mnuchin had said there would be a resumption of bilateral talks between the two countries regarding trade matters in a couple of weeks.

Trump’s words added to the woes of the stock market that had optimistically steadied on Tuesday. Chinese stock market fell by around 0.79 per cent. Kiyoshi Ishigane, Tokyo-based Mitsubishi UFJ Kokusai Asset Management Co.’s fund manager said, “Chinese shares were already exposed to downside risks.

Trump’s comments likely increased those risks. There are worries about U.S. consumer sentiment. There are also concerns that China’s economic slowdown hasn’t stopped”. Meanwhile, riding on these uncertainties, the United States’ dollar also did not fare well on the day, falling in line behind Tuesday’s dip of 0.3 per cent.