US Stock Futures Slide as S & P 500 Verges on a Bear Market
(Bloomberg) – US stock index futures widened their losses and signaled that US stock benchmark could enter a bear market when money markets reopened on December 26.
Mars contracts on the S & P 500 index fell 0.4 per cent from 9 pm 10:48 in Singapore, having fallen as much as 1.1 percent and increasing as much as 0.5 percent in volatile trading. Futures on the Nasdaq 100 Index and Dow Jones Industrial Average fell 0.5 percent each. The US stock benchmark is 7 points away from full-fledged bear market drops.
Trump called Mnuchin a "very talented guy, very smart person", when he responded to reporter's questions in the White House after addressing the United States armed forces members on Christmas Day. He also said that the central bank "raises interest rates too fast", but he has "confidence" that the Fed will "get it very soon." Mnuchin talked on the phone with Trump several times over the weekend and also after a brutal trading day on Christmas Eve, CNN reported and quoted a source near the White House.
"Markets have pretty much been aware of how jumping they will be – very," said Steve Englander, head of global G-10 FX research and North America's macro strategy for Standard Chartered Bank. "The question is what is the primary driver of the jumpiness – financial concerns, the Fed policy, the Trump Fed conflict, slowing global growth. Nothing is particularly encouraging right now."
The US stock market has been rolled in for a year with major reversals with the Nasdaq Composite, which fell into a bear market last week, and the country's benchmark index closes closer to ending the longest bull market ever recorded. Even Donald Trump's expression of confidence earlier on Tuesday did not reassure markets that had sprouted after Bloomberg News reported that the president had discussed firing the governor to raise interest rates.
"It is very unusual that the bias among market participants is disadvantageous during this time of year, and there is not much time to fix it," says Walter "Bucky" Hellwig, senior manager of BB & T Wealth Management in Birmingham, Alabama, by phone. "I'm not a trader, but I checked futures three times on Sunday and watch futures on a Christmas Eve too – when you get moves like this, you just can't ignore them."
Bernd Berg , global Macro and FX strategist at Woodman Asset Management is not optimistic. "We are in the midst of the worst storm in global financial markets since the 2008 crisis, with the markets crashing from New York to Tokyo," he said. is unlikely to be rescued this time, the global market crash may continue well into next year. "
Elsewhere, Japan's Topix index rose on Wednesday after throwing nearly 5 percent on Christmas day. in a bj Eagle market yesterday, paired its gain to 0.5 percent at the mid-term thesis after asking as much as 2 percent earlier.
"As far as futures suggest, the market is indecisive right now," says Jingyi Pan, market strategist at IG Asia Pte. "The rather empty calendar and empty desks after Christmas could mean that there may be little to arrest the fall if it
To contact the reporter on this story: Sarah Ponczek in New York at sponczek2 @ bloomberg .net
To contact the editors responsible for this story: Divya Balji at dbalji1 @ bloomberg .net, Jeremy Herron at jherron8@bloomberg.net, Tom Redmond
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