Economy

World markets, USA yields fall on U.S. policy doubts, Barcelona attack

World markets, USA yields fall on U.S. policy doubts, Barcelona attack

Instead, the White House said Cohn plans to stay put and focus on advancing Trump's economic agenda.

A Trump administration official has called a reporter up and had a very candid, shall we say, colorful conversation, which he maybe did, maybe didn't think was on the record.

United States stocks have sold off, with the S&P 500 hitting its lowest level in a month, as escalating worries about the Trump administration's ability to push through its agenda rattled investors.

The speculation came a day after Trump disbanded two business councils, with several chief executives quitting in protest over his remarks on white nationalists.

The Dow closed at 21,750.73, down 1.2 percent, while the Nasdaq fell 1.9 percent, to 6,221.91, and the S&P 500 dipped 1.5 percent, to 2,430.01.

The President needs the support of fellow Republicans as he tries to push his policy agenda, including tax cuts, through a Congress that is controlled by the Republicans.

On Wednesday, U.S. Secretary of Veterans Affairs David Shulkin told journalists that he was "outraged" as a Jewish American by the activities of white supremacists groups and neo-Nazis and could not hold his feelings but to speak out against them.

It's understandable that the possibility of Cohn leaving the administration would weigh on risk sentiment.

One individual who has been at the center of the conversation is Trump's Chief Economic Adviser.

"He's anxious about his reputation being trashed, which is much more valuable to him than anything else", a former administration official who knows Mr Cohn said.

Gary Cohn speaks to President Donald Trump at the G20 summit in Hamburg, Germany, July 8.

Walters told the press pool she does not know if Cohn has spoken to the president about the comments and how upset he is over them.

"Gary intends to remain in his position as NEC director at the White House".

The White House official denied reports, saying, "Nothing has changed".

Meanwhile, yields rose slightly on southern European bonds in the likes of Spain and Portugal in a global retreat from riskier assets that saw the biggest drop in three months on Wall Street overnight.

If Cohn were to leave the White House, "there will be a material market sell-off", Isaac Boltansky of Compass Point Research & Trading said in a research note to clients Thursday. Recently employed to ram a strand of military discipline through the chaotic White House he stood, arms crossed, staring at the ground, his face fixedly blank. The latest cause for concern was speculation over the possible departure of National Economic Council director Gary Cohn.