The FTSE fell by 1. The share prices of Britain's biggest companies were also hit by a stronger pound, which has today reached a seven-month high against the dollar.

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At the same time, stock markets in Europe were also flashing red and America's top share indices fell at the open but managed to later undo losses. Sell-offs started on Wednesday after reports claimed the US President asked former FBI director James Comey to drop an investigation into Michael Flynn and his connections to Russia.

Now it's feared this could be Mr Trump's "watergate" moment in reference to former President Richard Nixon, who was forced out of office in the s.

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The London Stock Exchange. Stock markets in the US and Britain have scored multiple record highs since Mr Trump was elected in November, amid promises of tax cuts and state spending.

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But now it's feared amid the 'Comey scandal' these policies may never be implemented, or are at least set to be delayed. Kathleen Brooks, research director at City Index Direct, said: David Madden, market analyst at CMC Markets UK, said: However, a couple of UK companies have managed to buck today's downward trend - in particuar the Royal Mail and Burberry after posting updates that pleased investors.

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GETTY Stock markets crash amid fears of Donald Trump's impeachment The FTSE fell by 1. The deputy attorney general has confirmed ex-FBI Robert Mueller will lead an independent investigation into the new President's links to Russia.

Stocks: 81 days without a 1% dive. Not happened since - Feb. 8,

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