Gary Cohn stays on as White House chief economic adviser

A worker shelters from the rain under a Union Flag umbrella as he passes the London Stock Exchange in London Britain

A worker shelters from the rain under a Union Flag umbrella as he passes the London Stock Exchange in London Britain

The exodus of executives sparked talk that Mr Gary Cohn, Mr Trump's top White House economic adviser and a key liaison to the United States business community, might resign in protest.

Chief among them were rumors that Gary Cohn, director of the National Economic Council, would resign, following Trump's defense of white nationalist protesters in Charlottesville.

The Dow Jones industrial average fell 274.14 points, or 1.2%, for its biggest drop since May 17, to close at 21,750.73.

A sense of growing unease gripped financial markets as President Donald Trump exacerbated the controversy sparked by a racist rally in Virginia and terrorists struck a crowded street in Barcelona. "People began to fear, as they did this morning, that if Cohn would leave, then others might follow, and he would no longer be surrounded by competent people, and that took a hit in the market".

"Certainly the Cohn stuff started it and while there isn't much out there yet about what's happening now in Barcelona, it's also adding to it", Robert Parks, managing director in equity derivatives at RJ O'Brien and Associates LLC, said by phone.

The White House did not immediately respond to a CNBC request for comment Thursday.

U.S. crude also lost 0.1 per cent to US$47.05 today, surrendering some of yesterday's 0.7 per cent gain, heading for a 3.6 per cent weekly loss.

Even with its losses this week, the euro is still up more than 11 per cent so far this year.

But the euro later strengthened as the greenback declined.

"Most of the agenda. has been a little bit distracted by non-economic factors", said Bill Northey, chief investment officer at U.S. Bank Wealth Management.

"We firmly believe that if Mr. Cohn departs the White House there will be a material market sell-off as he is running point on tax reform and considered as a front-runner to replace Federal Reserve Chair Yellen", Boltanksy said. "We're still fighting. There's Treasury and [National Economic Council chair] Gary Cohn and Goldman Sachs lobbying".

Investors appeared to be losing faith in the Trump administration's ability to move forward with tax cuts and the rest of its domestic economic agenda, some strategists said.

The negative mood swing among USA investors follows more than a dozen blue chip chief executives yesterday quitting President Trump's advisory councils, forcing two committees to be disbanded.

Once-and-future action hero and former California Gov. Arnold Schwarzenegger (R) may not be the best person to convince President Trump about the merits of unequivocally condemning neo-Nazis and white supremacists, given their history and especially when he uses a Trump bobble-head, but he gave it a try anyway on Thursday night.

You have left for this month.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.