By: DailyForex.com
Asian stocks saw their biggest drop in two weeks on Wednesday morning as investors faced fresh doubts about U.S President Donald Trump's economic plans and propsoed growth agenda. MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.3 percent on Wednesday after seeing its highest level since 2015 on Tuesday. U.S. futures were also down on Wednesday morning, hinting to rough seas ahead during the rest of Wednesday's trading day.
Wall Street struggled on Tuesday as well, with bank stocks leading the decline and suffering the sector's largest one-day decline since June 2016. Investors withdrawing funds from the banking sector "voted with their feet" and expressed concern that Trump would not be able to pass his healthcare bill later this week, a sign that he will have trouble delivering on other promises as well.
The Japanese yen gained heavily against the dollar, hitting a four-month high of 111.63, and falling below the notable 112 level for the first time since early February. The dollar index against a basket of currencies also fell below the key level of 100 .DXY on Wednesday. The
Oil prices also erased Tuesday's gains, with U.S. WTI crude falling below overnight lows to $48.15 per barrel, fresh four-month lows.