Before the re-opening of the US exchanges, such as the President of Donald Trump has called for the recent sharp falls in the rates for the purchase of shares. “I think it is a great opportunity,” he said in the White house before the end of the Christmas break on Wall Street. He had great faith in the American company.
The rise in share prices in the first year of his tenure, sees Trump as his merit, and reacted with anger over the currently weak markets. Once again, he criticized, therefore, the Federal Reserve Bank (Fed) has increased the interest rates slowly but steadily. “You have to raise interest rates quickly, this is my opinion,” said Trump. He had already announced on Twitter, that the Fed “is the only Problem with our economy”.
Trumps Finance Minister Steven Mnuchin had tried last weekend to intervene and calm the markets. The President does not plan to dismiss the Fed Chairman Jerome Powell, promised to Mnuchin. Phone calls from the Finance Minister with the heads of some of the largest U.S. banks seem to have investors, however, rather more worried.
in addition to the turbulence on the equity markets, the budget dispute in the USA impacted policy, especially the economy. The government is since Saturday in a partial stoppage of the business of government. Trump wants to stop this so-called Shutdown, when it receives more money for its border wall with Mexico. Also, the trade dispute with China, and the high punitive tariffs provide further uncertainty for investors.
international stock exchanges
The U.S. stock exchanges in the worst December in the offing since 1931-the times of the then world economic crisis has affected. The Dow Jones Index lost on Christmas eve, almost three percent before the Wall Street castle over the holidays. The Dow has lost since the beginning of October, around 18 percent. The other U.S. stock indices lost heavily, the broader S&P 500 since mid-September, about 20 percent, and the Nasdaq since the end of August to almost 25 percent. However, the US budget dispute also has international influence, among other things, the stock exchanges have collapsed in China and Japan.