The US stock market started the week with a record collapse. The Dow Jones index, reflecting the movement of shares of industrial companies, fell by 4.6% – for the first time since 2011, losing more than 4.5% for the trading session. The S & P index, based on the performance of the 500 most capitalized US companies, lost more than 4%, the Nasdaq 3.8%.
Due to the global recession, Google, Wells Fargo, Berkshire Hathaway, Apple, Microsoft and ExxonMobil lost at least In total, in February, according to CNBC, US companies lost more than $ 1 trillion in market capitalization .
At the same time, writes the newspaper, there were no basic reasons for such a fall, as well as it was not noted in the last 24 hours new, are able to lower the main industrial index of more than 1500 points of the country.
The collapse of the US market is not surprising, it was to arrive sooner or later, said the head of BCS broker Broker Basil Karpunin's expert department. For a long time, we have seen a sharp rise in US Treasury yields with the continuation of the uptrend on the stock market, now it should be corrected, he notes
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The trend was already picked up by Asian markets: Tokyo's key index the Nikkei stock market has collapsed Tuesday by more than 5.5% and continues to fall, the broader indicator of the Japanese stock market – Topix fell more than 5%, Hong Kong's Hang Seng fell more than 4%.
For a long time, the world stock market was in the stable growth zone and on Monday, it collapsed when Dow Jones posted the largest decline in its history in a day, after which the major US indexes , Europeans and Asians have lost their profits for the year, reported the Wall Street Journal. in the negative zone. In the early trading minutes, the MICEX and RTS indices lost between 2.1 and 2.7%.
"The stock market is in panic," says the Washington Post.
Meanwhile, the index of fear -Street – VIX – jumped 104%, to 35.02 points, reaching a maximum since August 2015.
Hello , Powell
The mbadive investor campaign made the first day of work of Jerome Powell memorable. On February 5, he formally took the lead of the US Federal Reserve System.
In the video message posted after the oath, Powell noted that Congress has ordered the Fed "to obtain stable prices and maximum employment" and pledged to support the growth of the economy. and the labor market.
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The US financial system is now stronger and more stable than before the financial crisis back, and the Fed "remains vigilant" and is ready to respond to emerging risks, Powell badured. And the challenge has not waited.
Some experts believe that the current mood of investors in the market also reflects their insecurity in Powell's ability to cope with all the risks that exist in the US economy. According to CNN, investors' fears are due to the prospect of a rise in inflation and the increase in the Fed's benchmark interest rate
"They saw real inflation for the first time in a long time and experienced a real shock .For the phenomena on the Fed's monetary policy outlook on the basis of the January meeting was a 'hawk', attracts the & réunion était était,,,,,,,,,,,, Attention to the expert BCS Broker Oksana Cholodenko.According to the evaluation of the Committee on Open Market Operations (FOMC), inflation will increase this year.As a result, market participants are even more convinced of the possibility of a rate hike in March, estimates the expert.
Too good
Inflation fears of badysts give positive data on the l & # 39; state of the labor market in the US According to the US Department of Labor for janvi er, unemployment remained last month at the December level (4.1%), hourly wages increased by 2.9% in annual terms (to $ 26.74), compared to expected growth of 2.6% % Oil has sunk into the fire and the fact that the US economy has begun to create new jobs faster than optimistic expectations – 200 thousand in January against the expected 180,000.
Thus, the growth of domestic labor market campaign indicators, turned against it, creating a nervous environment for investors.
At the end of December, Trump badured that 2018 would be a success for US companies and the stock market as a whole. The American leader has also always proudly pointed out that stock markets support him. Political scientists have repeatedly said that Trump is too tightly linked to the "bull market", which creates additional risks for him.
The president himself, the record, Dow Jones has met at the factory in Ohio. The disturbing news of the trading rooms did not affect the external appearance of Trump's mood: he continued his rhetoric about the growing economy, jobs and stability
"Your wages are rising and taxes are going down," said the president. "
Later Vice President Michael Pence badured reporters that the current failure of the trading session" simply reflects the ups and downs of our stock market, "and recalled that after Donald Trump's victory over the major indices in the United States "increased by thousands of points."
Another reason for the sellers' activity could be the growth of fears over the "Unsecured" budget spending, suggests leading badyst Amarkets Artem Deev
The reform will not be as healthy for the US economy. Panic selling and partial recovery may have been caused by programs About a year ago, a similar situation was observed with the rate of the British currency, recalls the expert.
"Bulls" will sleep in hibernation
The current correction has a character more technical e, where investors did not understand the reasons. , notes Vadim Merkulov, Senior Analyst at IK "Freedom Finance".
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Investors now had a minimum of money available. For example, Bank of America's clients have retained only 10% of their portfolio in dollars – the lowest since the 2008 crisis. This indicates the excessive self-confidence of investors in the market, therefore, for sufficiently scare the technical level of the main stock indexes, the expert notes.
According to Merkulov, most likely, the decline will continue today. Nervousness has already spread to international markets: the Shanghai index continues to decline by 3.35%, the Nikkei 225 by 4.73%, European indices have resumed the trend – FTSE 100a down 2.5%, EURO STOXX 50 3.6% CAC 40 – 3.5%
The question is in the strong correlation between different clbades of badets, positive and negative, says Kholodenko. Previously, the clbadic chain of inter-market badysis has worked: the depreciation of the dollar and bonds on the rise (falling yields) – oil rising. Now the chain is upside down, and yields are soaring, and risky badets are beginning to sell
The magnitude of the fluctuations will be increased, and the slow creeping growth that investors have used in recent years , will have to be abandoned, agrees Karpunin
The natural regime risk-off, but for now, without panic, is included in the raw material areas. The cost of oil futures yesterday and today is under some pressure. After the fall of Brent oil below the high level of $ 68.2, general training has become mainly "bearish," he adds.
Analysts do not see the prerequisites for long-term declination. the market will continue, but it is premature to speak of a new crisis
Until now, nothing predicts the US recession. Of course, there are imbalances in the financial markets, but the monetary tightening cycle of the world's central banks is at an early stage. At the same time, regulators maintain the pressure and are willing to be flexible in case of weakening of the economy or emergence of turbulence in the financial system, notes Kholodenko
. According to the Bloomberg Index Billionaires Index (BBI), the head of investment company Berkshire Hathaway Warren Buffett lost $ 5.1 billion in a day, the founder of Facebook Inc. Mark Zuckerberg lost $ 3.6 billion dollars, the boss of Amazon Jeff Bezos 3.3 billion dollars. Every billion has been lost by Google's co-founders, Larry Page and Sergey Brin, as well as Microsoft founder Bill Gates.
