tips for living from the Ex-businessman and current President of the United States, Donald Trump: The 72-Year-old advises investors to use the last of the fallen classes of the stock acquisition. “I think it is to buy a great opportunity. Really to buy a great opportunity,” said Trump on the first Christmas day, in front of reporters in the White house. He had “great confidence” in U.S. companies, the President stressed.
In the financial markets, there is considerable uncertainty currently So threatening to the US stock markets, the worst December since 1931 – the times of the then world economic crisis. The Dow Jones Index lost Christmas eve, almost three percent before the Wall Street castle over the holidays.
The Dow has lost since the beginning of October, around 18 per cent, the broader S&P 500 since mid-September, about 20 percent, and the Nasdaq since the end of August to almost 25 percent.
On Wednesday afternoon, Central European time, opening the US stock markets. It is expected a slight recovery.
Also in Tokyo, the Nikkei Index fell sharply on Tuesday, five percent. On Wednesday, it went uphill steeply, then the Index turned negative and closed, ultimately, 0.9 per cent firmer. “A third of the sales will be triggered by panic, another third by the loss limits and the remaining third pull by speculators trying to get out of the market weakness, Profit,” said Takashi Hiroki, chief strategist at Monex Securities in Tokyo.
The German market could not react to the developments. Last day of trading in the Dax was due to the holidays the Friday. For the start of trading on Thursday but are expected to haircuts.
Sharp criticism of the Central Bank, the Fed
the nervousness on The markets is back on Trumps tough trade policy against China. The U.S. President accuses the people’s Republic of unfair trade practices and interferes with the large deficit in the exchange of goods with the country. China rejects the accusations. The world’s two largest economies have covered in the dispute with billion-dollar special duties. The conflict has caused in the world economy, a sustainable uncertainty. A solution is not in sight. And also with Japan and the European Union, the Trump argues questions of government on trade.
in Addition, as a negative factor that is currently a partial Authorities shutdown (“Shutdown”) in the United States. Trumps Republicans had failed on Friday, in the Senate the necessary votes from Democrats for the release of five billion dollars to get the President for the construction of the border wall calls to Mexico. The money was supposed to be included according to the will of Trumps in a Zwischenetat, which also allows for the financing of various authorities. Here, too, no quick solution is in sight.
For the President, the current situation is more than unfortunate. Trump looks at the increasing share prices in the first year of his term as his merit, and responded with increasing anger to the currently weak markets. In the center of his criticism of the Central Bank, the Federal Reserve (Fed) increased the interest rates, having regard to the economic data slowly, but steadily.
“they raise interest rates too quickly, this is my opinion,” said Trump. The appointment is in the Oval Office was meant to encourage American soldiers to call to wish you happy holidays. Further gradual interest rate increases, according to the Fed last week probably. However, the US Central Bank is expected to increases in just two interest rates in the coming year, rather than three, as in September, indicated. (An analysis of the ratio of Trumps to the Fed you can read here.)
crisis management of the Minister of Finance Mnuchin
On Monday had tweeted Trump: “The only Problem our economy has is the Fed.” In the last week, it was mentioned in media reports, and Trump have discussed in private the possibility of a dismissal of the self-appointed Fed chiefs Jerome Powell. Minister of Finance, Steven Mnuchin denied.
Mnuchin had tried in recent days to reassure the markets. On Monday, he had convened a short conference call with a crisis group made up of representatives of the Supervisory authorities. This applies only in times of severe market dislocations. According to participants, the supervision stated in the interview that she had observed no extraordinary incidents during the most recent downturn.
On Sunday had spoken Mnuchin with the heads of the six largest U.S. banks. These assured him that they had sufficient liquidity for lending and the markets have continued to function properly .
In Tokyo, said the Central Bank chief Haruhiko Kuroda on Wednesday, the uncertainties have stepped up, most recently the “economies due to developments in the people Overseas”. The Japanese economy and those in the other countries, but resistant enough to withstand the “all shocks”.