Market Overview

19 November 2019

No impeachment issues for the market. Trump likely to hold the office

The impeachment inquiry by Democratic majority in the U.S. House of Representative went as an early bird presidential campaign in 2020. Democratic representatives are starving for something that might look like a personal vendetta to an alien President Donald Trump. This inquiry could be considered as a culmination of political confrontation between traditional American political mode and a new assertive way of ruling the country.

Discouraging openness of Trump concerning impeachment hearings is in his favor. Declassifying July’s phone call transcript with Ukrainian President Volodymyr Zelenskiy is a strong move to expose the real actions. “I did nothing wrong”, says Trump. 

Democrats are seen more aggressive at the point no president abusing the power should run the office, a signal to the Republicans to replace a candidate for the coming election. Would it be respected is a major question. So far, Republicans are falling in line behind Trump to protect their unity. Even though not every Republican fellow members find appropriate the Trump’s manner to treat the witnesses of the inquiry and U.S. government employees like former ambassador to the Ukraine Marie Yovanovitch. Questioning the ambassador's competence on his Tweeter or discussing it with foreign leaders publicly is not something any politician on such a position should do. A new political repertoire introduced by Trump is not common for political arena in United States. "I disagree with the tweet," Republican congresswoman Elise Stefank said. Mike Conaway, another Republican on the House intelligence committee, said the president's tweet was "not something I would do".

Mr Trump blunt language and shoot-from-the-hip tweeting is not something welcomed in American politics. Neither is an attempt to use other sovereign nation’s officials in political affairs inside United States. That is why Democrats reiterated their commitment to examine the trustfulness of the written answers the president provided in former Special Counsel Robert Mueller’s investigation of Russian interference in the 2016 presidential election.

Both Democrats and Republicans are behind the agenda and challenges American nation is facing today. But, Donald Trump is seen much closer to it. A different story how Trump copes with it keeping in mind political traditions in United States.

The markets are reluctant to the impeachment issues so far. Both S&P500 and Dow Jones indices’ futures are at historic highs. Trump repeatedly warned markets to go “down the tubes” if the Democrats will win the election in 2020.


The subject of an impeachment inquiry

Lawmakers are examining whether Trump abused his power by withholding $391 million in aid to Ukraine as leverage to get Kiev to investigate Joe Biden, a leading contender for the Democratic nomination to take on Trump in 2020. Later on in September the aid was released. On that call in late July 2019 Trump asked Zelenskiy to open a corruption investigation into Biden and his son Hunter. Trump’s position is that Joe Biden used his power as vice president to strong-arm Ukrainian authorities into ousting the country’s top prosecutor at the time, Viktor Shokin, to protect Hunter Biden from a corruption investigation. 


Disclaimer:

Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or investment advice by TeleTrade.

Indiscriminate reliance on illustrative or informational materials may lead to losses.


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