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After a quiet start in Asia trading hours, Tuesday has turned into something else entirely with the sudden resignation of Trump’s national security adviser Michael Flynn and a similarly traumatic fall from grace by shares in Toshiba after the Japanese conglomerate delayed its earnings release.
Mr Flynn resigned in the face of mounting allegations that he illegally discussed sanctions on Russia with the Russian ambassador to the US and concerns he had lied to White House officials about the case.
Meanwhile Tokyo-listed shares in Toshiba dropped as much as 9.5 per cent after the troubled nuclear-to-electronics conglomerate failed to publish its quarterly results at noon in Tokyo as scheduled. The Nikkei newspaper earlier on Tuesday reported the company would warn of a risk to its future as a going concern.
Equities in Asia surrendered early gains, with Australia’s S&P/ASX 200 down 0.1 per cent at the close and Tokyo’s Topix index down 0.7 per cent in late afternoon trading. Hong Kong’s Hang Seng index is off 0.5 per cent as well.
Some of that tumult looks set to rumble on into London, as futures tip the FTSE 100 index to drop 0.2 per cent at the open, while the S&P 500 is expected to open 0.1 per cent lower in New York.
Corporate earnings reports out today include Credit Suisse, EDF, Acacia Mining and Rolls Royce.
The economic calendar for Tuesday is a veritable cornucopia of GDP and inflation data (all times London):
- 07.00: Germany GDP, consumer inflation
- 08.15: Switzerland consumer and producer inflation
- 09.00: Italy GDP
- 09.30: UK consumer, producer and retail inflation; house price index
- 09.30: Portugal GDP
- 10.00: Eurozone GDP