Impeachment crisis could hit growth, OECD warns
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.THE CHIEF economist of the Organisation for Economic Co-operation and Development yesterday warned that the US impeachment crisis could hit world growth, as financial markets shrugged off the raids on Iraq and focused on the position of President Bill Clinton.
Ignazio Visco at the OECD said: "The US political crisis could have a serious effect on world growth because stock markets could react."
Mr Visco said stock markets in US, Canada, Italy and Germany were all overvalued. He argued that a market fall of 20 per cent - which could be triggered by President Clinton's impeachment - would wipe 1 per cent from US growth.
Concern about President Clinton's political future weighed heavily on the dollar, which had fallen another 1.3 yen to 115.08 yen by lunchtime in New York, but later rebounded to post modest gains, closing at 116.10 yen.
The Clinton crisis also hit US government bonds, with the yield on 30- year Treasury bonds up 2 basis points at 5.03 per cent during afternoon Wall Street trade.
The renewed worries about the US presidency distracted attention from the crisis in the Gulf, and crude oil prices floundered as it became apparent the bombing raids had not halted the flow of Iraqi oil exports.
Oil prices slid by 11 per cent in New York late on Thursday night, while on London's International Petroleum Exchange, February Brent crude dipped back below $10 a barrel in afternoon trade.
Nick Stamenkovic, chief economist at Bank Austria Creditanstalt Futures, said: "With the supply overhang and the weak global economy, the outlook for the oil price continues to be poor."
Most major European bourses closed higher, spurred on by gains in Far Eastern markets overnight and a strong opening on Wall Street.
In London, the FTSE-100 index broke through the 5,700 barrier, closing up 1 per cent at 5,741.9, as fund managers embarked on a year-end buying spree.
One trader said: "It's quite common for fund managers to start buying heavily at this time of year to try and improve their showing by year- end".
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments