US Markets Drop in Their Worst Day of Christmas Eve Trading Ever

Asian markets show mixed signs for investors wary of possible post-Christmas stock crash

Asian markets show mixed signs for investors wary of possible post-Christmas stock crash

Monday's tweet comes after U.S. equity markets opened sharply lower in a holiday-shortened session.

The S&P 500 fell 2.7 percent and remained on course to record its largest percentage decline in the month of December, while the Nasdaq slid 2.2 percent.

After a pause in trading for the holiday, USA markets reopen Wednesday. The index rebounded partially from those lows on Wednesday, gaining 0.89 percent on the day.

"As far as the futures are suggesting, the market is indecisive right now", said Jingyi Pan, market strategist at IG Asia Pte.

Markets in Hong Kong, South Korea and Australia were closed for Christmas Day.

Earlier, Mr Mnuchin tried to dismiss reports that President Trump had discussed the possibility of firing the Federal Reserve chairman, after the bank raised interest rates last week. The gauge is on the brink of a bear market, just shy of its first 20 percent decline since 2009. Monday's drop amounted to 2.9 percent. US government debt is approaching $22 trillion. Advisers close to the president say that this is making Trump nervous as he looks to mount his re-election campaign.

"The banks all confirmed ample liquidity is available for lending to consumer and business markets", the Treasury said in a statement attached to a tweet from Mnuchin announcing the calls.

Treasury Secretary Steven Mnuchin on Monday hosted a call with the president's Working Group on Financial Markets, a body known colloquially as the "Plunge Protection team", which normally convenes only during times of heavy market volatility.

President Donald Trump blasted the Federal Reserve on Monday, describing it as the "only problem" for the United States economy, as top officials convened to discuss the growing rout in stock markets caused in part by the president's attacks on the central bank, Reuters reported.

"They're raising interest rates too fast", the president said following a teleconference with US troops.

Binder: Presidents, before Bill Clinton, regularly pressured the Fed but only when the economy was doing poorly.

Stephen Innes, head of APAC trading at OANDA said that investors "have no confidence in the administration". It was the Nasdaq Composite's worst week since 2008 as well, as it dipped into bear-market territory.

The stock market malaise comes with Trump refusing to sign a budget bill to keep the government funded as he demands money for a US-Mexico border wall.

Adding to jitters, Trump's acting chief of staff, Mick Mulvaney, on Sunday said a partial US government shutdown could continue to January 3, when the new Congress convenes and Democrats take control of the House of Representatives.

Binder: So, I think that's the big question for the Fed, is how does the credibility of the Fed come out of these attacks by the president, which have been going on for a good year, even as the Fed has been incrementally raising rates. "There's a chance this could go into the next Congress".

"They're raising rates too fast because they think the economy is so good", Trump told reporters in a Q&A following his annual Christmas teleconference with USA troops. This is the 63rd straight year that NORAD has publicly tracked Santa's sleigh on its global rounds.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.