The testimony from the USA’s European Union Ambassador in the Donald Trump impeachment inquiry not only surprised the US President on Wednesday but it gave financial markets a genuine shake sending the safe havens rallying once again and US stock indexes lower. Gordan Sondland testified under oath in the Senate impeachment inquiry that President Trump directed his personal lawyer Rudy Giuliani to pursue a “quid pro quo” with Ukraine. Mr Sondland said “Mr. Giuliani’s requests were a quid pro quo for arranging a White House visit. “Mr. Giuliani was expressing the desires of the President of the United States, and we knew that these investigations were important to the President.” He also said “Mr. Giuliani demanded that Ukraine make a public statement announcing investigations. Mr. Giuliani was expressing the desires of the president of the United States, and we knew that these investigations were important to the president.”
I have said it for a week now, the probability is that Donald Trump will be impeached. It does not mean he will lose his job; it simply means he will stand trial in the Senate on the charges laid against him. There needs to be a 75% majority decision in the Senate for Trump to lose his job and that is highly unlikely to happen. However, what is important is that you know how financial markets may react.
The last time a US President was impeached was when Bill Clinton stood trial over the Monica Lewinsky affair and during the impeachment trial the stock market fell very sharply, down around 20%. Following President Clinton’s acquittal, the stock market recovered the losses and closed higher.
The market needed an excuse to sell off and we’ve been trading at all time highs all year and my opinion is the market just got the news that it needed to begin a corrective phase leading into Xmas. Safe haven assets such as the Swiss Franc, Yen and Gold will likely benefit in coming weeks.
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Andrew is a professional trader and successful investor who has a strong focus on education.
He is a regular Sky News Money Channel Guest and one Australia’s most awarded and respected financial experts, and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar.
Director at LTG GoldRock, Andrew Barnett, guides thousands of traders around the world in the live market on a daily basis, advising them on buy and sell directions, as well as trading his own personal account.
Andrew, a regular key-note speaker at trading and wealth-creation events throughout the Asia Pacific region, is an authorized representative registered with the Australian Securities and Investment Commission (ASIC).
Currently Andrew is living his dream life on the Sunshine Coast with his loving wife and three children.
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