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European equities set for sharp daily decline amid political turmoil

European equities set for sharp daily decline amid political turmoil

European equities are on track for their worst fall in nearly six weeks on Wednesday, amid political turmoil after House Speaker Nancy Pelosi began measures aimed at ousting President Donald Trump, in addition mounting calls for the British Prime Minister to resign.

As of 07:59 GMT, the Euro STOXX 600 fell 1.09 percent to 385.58, France CAC 40 was 1.27 percent down to 5,656.42. In Germany, DAX descended 1 percent to 12,187.24 points, while Britain’s FTSE 100, slipped 0.73 percent to 7,238.35.

White House Speaker Nancy Pelosi said in a televised address on Tuesday that they would begin impeachment proceedings. This investigation would be the first of its kind since President Bill Clinton was removed from office in 1998.

The move follows Trump's accusation of putting pressure on the Ukrainian President to open an investigation into the family of next year's Democratic Presidential candidate Joe Biden.

Worries intensified as Trump addressed the UN General Assembly, saying he would not accept a "bad deal" in trade negotiations with China.

Chinese diplomat Wang Yi responded quickly, saying Beijing would not fall prey to threats, would not allow interference in its affairs, including Hong Kong, and the trade talks must be "fair and equal." He also warned, "China must protect its fundamental interests on issues of China's sovereignty and dignity."

In Britain, the Supreme Court ruled yesterday that Prime Minister Boris Johnson's decision to suspend Parliament for five weeks was illegal.

Johnson now faces rising calls from the House of Representatives and the opposition Labor Party to resign after the Supreme Court's decision.

The euro suffered a severe blow from weak eurozone economic data earlier in the week, heading down 0.15 percent, to $1.1001.

The pound dropped against the U.S. dollar to 1.2437, falling below the 1.25 mark, dragged down by Brexit uncertainty and the political situation in Britain. 

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