US stock markets that have opened up after the brutal shakeout before Christmas are still on the edge as Japan’s Nikkei is also swinging between highs and lows. On the day of Christmas there was a rigorous plunge of 5 percent what pushed Nikkei’s index into bear market while the index of Shanghai too fell by 0.3 percent. After the decline of Dow Jones index before Christmas the futures markets of US were in a different mood as investors prepared for the worst since situation in Washington too was unsettling due to President Trump’s actions.
Steven Mnuchin, US Treasury Secretary called a meeting of heads of America’s largest banks after which he announced that all were healthy and there was no danger of an impending financial crisis. This and several other moves led to investor anxiety that till now were not worried about soundness of banks as even President Trump berated Fed chairman for raising interest rate. The remarks of Mnuchin were responsible to some extent for the stock market bloodbath before Christmas during which index of both Dow and S&P 500 fell by 3 percent creating a historical record of sorts. Trump’s unorthodox remarks were followed by US government’s partial shutdown that exacerbated the turmoil in trade circles about the belligerent behavior of president.
The general sentiment among international investors was that Trump lacks a credible team that can manage US economy and its relations with global economy. Financial experts say that investors are fleeing US markets as they fear that the economy is going south though it is not but if this situation goes on it may become the truth and if that happens global capital markets are likely to be hurt too. Economists state that markets around the world are going through a phase of uncertainty due to slowing Chinese economy, Trump’s trade war with China and Europe along with Brexit worries.
Working as an Editor and Content Writer for over 3 Years, Melissa has skilled herself to write articles and reports regarding the day-to-day events, breakthrough, inventions, and launch news about the Science field. When not writing, she likes to read books of the fictional, suspense, and inspirational genre. She also loves to explore new places to spend time with friends and family whenever possible or, being a food-lover, try exploring new food places.