[ad_1]
New turbulence has been recorded on Wall Street in an environment marked by a wave of sales that has spread over the fourth consecutive trading session, causing the US stock markets to suffer losses of more than 2 %. During a session marked by low liquidity due to the Christmas holidays, investors have not hesitated to impose heavy losses on the S & P 500, which has closed on the bear market, while The Dow Jones index recorded the largest daily decline in Christmas Eve since 1918. In this scenario, the New York stock exchanges will post the worst performance since a month in December since the Great Depression of 1931. [19659002] The risk-averse scenario occurred amid tensions between the White House and the Federal Reserve, compounded by reports that US President Donald Trump was planning to sack the president of the United States. Fed, Jerome Powell. Although several US officials deny the problem and point out that Trump might not be able to leave Powell out of central bank control, the White House occupier again criticized the Fed's president, sparking a new apprehension among investors.
scenario, the S & P 500 index ended down 2.71%, the lowest of the day, cited at 2 351.10 points; while the Dow Jones also closed the trading session at 21,792.20 points, down 2.91%. The Nasdaq index, which officially entered the bear market last Friday, closed with a drop of 2.21% to 6,192.92 points. The Nasdaq even drew a reaction at the beginning of the trading session and briefly acted in the positive field, but sales increased.
To try to contain the sale, which took place since last week, the US Treasury Secretary. Steven Mnuchin met over the weekend with representatives of the six largest US banks to ensure markets function in a liquid environment. However, Mnuchin's efforts were perceived by some agents as a sign of fear on the part of the White House. "We live in situations where it is quite normal for the treasury secretary to communicate with the private sector, but what is serious is that it goes to the newspapers and signals that the government is worried. as if gravity was pulling the markets to an even lower level, "said Quincy Krosby, chief market strategist at Prudential Financial.
For Trump, "the only problem of our economy is Fed," which has left the markets "even more illiquid." However, in the badessment of Northman Trader's economist Sven Henrich, "Powell has done well He was the adult who told the kids that there was no more candy to deliver.He defended the independence of the Fed and resisted all the political pressures. Finally, we have a Fed board that has the backbone and Powell has to deal with the consequences of a very flexible policy of Ben Bernanke and Janet Yellen. "
In a scenario characterized by a weak Liquidity and a broad sense of caution, the shares of investors have abandoned banks, with a decline of 3.37% for Wells Fargo and 2.16% for JPMorgan. Boeing shares, which weigh more in the Dow Jones, have fallen below $ 300 and have accumulated accumulated losses of 25% since October, aggravated by the decline of 3.41% observed today.
Apple was also not spared and saw its stock plummet by 2.59%, which resulted in additional losses for the company's market value, which fell by $ 1 trillion. dollars in October to less than $ 700 billion for the first time since February 2017.
"It will take some time for the market to return to its previous peak.Volumility is high, the market is recovering slowly. It is unlikely that concerns will disappear until the signs of a stabilization in global economic growth are clearly apparent, and we do not expect this until the second quarter of 2019, "said Deutsche's chief strategist. Bank, Binky Chadha.
Source link
