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Stockbrokers work on the floor of the New York Stock Exchange, in New York (United States) on February 6, 2018. New York - The New York Stock Exchange faces the day after its biggest drop in history points, 1,175 units, which has pushed the Dow Jones back to around 24,400 points and has infected the rest of the world markets. EFE / Justin Lane
Stockbrokers work on the floor of the New York Stock Exchange, in New York (United States) on February 6, 2018. New York - The New York Stock Exchange faces the day after its biggest drop in history points, 1,175 units, which has pushed the Dow Jones…

Wall Street falls and the whole world falls behind

The international markets have risen with the worst falls in recent years, and it is presumed that the cause is the fear of American political unrest.

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President Trump promised to recover the country's economy, create new jobs and improve the conditions of US capital in general, but his excessive political actions could unleash exactly the opposite.

After the Dow Jones fell 1.175 points (4.6%) in just one day (its largest decline in history according to CNN), international markets have followed the trend falling between 2% (London) and 5.1 % (Hong Kong).

According to analysts, the causes have to do with economic speculation in the United States, where there is fear of an increase in interest rates at a precipitous speed, as well as inflation that is just as fast because of the new employment data that the president has not hesitated to promote.

And it is not an international trade monopoly on the part of the United States, but the reality that this country represents the largest economy in the world and protects the largest financial markets on the planet, which would make any change in Wall Street a contagious disease for the world’s economy.

However, several specialists attribute this decline to the typical corrections in the markets after years of bonanza and stability. "The most untidy but yet plausible explanation is that both the bond and stock markets had to undergo a correction after two remarkably placid years," said David Kelly, senior strategist at JPMorgan Asset Management.

For the experts of Mirabaud Securities Genève everything will be defined on Tuesday’s session that "will be very important, perhaps the most important since the beginning of the year, since it will test the nerves of investors and confirm (or not) if we enter in a phase of prolonged withdrawal from the market", as reported by the AFP.

 

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