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The scandals around Trump may not harm the markets as much as you’d expect

Is the "Trump trade" toast? It remains to be seen whether scandal will prevent the president enacting his economic policies.

By George Magnus  

Pundits increasingly talk about Donald Trump's impeachment – but what does it mean for the US economy? Photo: PA

If you want to see how financial markets react to a political crisis, look at Brazil. Last Thursday, the Bovespa stock market index plunged 10 per cent as new developments in the corruption scandal around President Michel Temer increased the odds of his impeachment.

Apropos impeachment, the US S&P 500 index also had a wobble last Wednesday, falling by 1.8 per cent as Deputy Attorney General Rod Rosenstein announced…

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