- US stock markets continued to slump after their most brutal week since 2008. Asian and European markets closed mixed. Many markets are either closed today or will shut early.
- Treasury Secretary Steve Mnuchin's call with the heads of six major US lenders Sunday was a bizarre attempt to stem brutal recent losses in markets. It backfired.
- Fears that the US government shutdown could continue into January, and Trump's suggestion that he aims to fire Fed Chairman Jerome Powell, have hit market confidence.
Investors are balking at chaos in the White House on Christmas Eve after the most brutal week for US markets in a decade, wading through thin trading and early exchange closures before signing off for the holiday.
- They're stunned by Treasury Secretary Steve Mnuchin's stange call to bank CEOs. Mnuchin just shocked the market by invoking crisis-era language in describing it usig alarming, crisis-era language. Mnuchin is slated to convene with a crises team of government banking and finance officials on Monday after a bloody month for US markets. Last week, the Dow fell by nearly 7 percent, showing the worst weekly average since 2008.
- They're worried about the Fed. White house advisors including Mnuchin reportedly convinced President Donald Trump that he lacks the authority to fire Federal Reserve Chairman Jerome Powell. In what would have been an astonishing break for an independent Fed, Trump had asked aides whether he could fire him, presumably in retaliation for raising rates for the fourth time under his leadership.
- They're weighing the end of one of the most astonishing bull markets in history. Propped up by loose monetary policy, stock markets have soared. From the 2009 low to the September 2018 highs, US stocks have gained more than 280%. Slowing global growth, a trade war, and hawkish Fed policy is helping usher in what looks to be a new era for stock markets.
- They're not even at their desks. The US stock market will close on Monday at 1 pm EST. Markets in the UK, Holland, France, Ireland and Spain will also close early on Monday. The following markets are closed all day: Austria, Denmark, Finland, Germany, Italy, Norway, Sweden, Switzerland, Czechia, Hungary, and Poland. And the government is continuing what many politicians have projected to be a potentially lengthy partial shutdown.
It's painting a gloomy picture. "Markets still under pressure from last week’s more hawkish Fed update, exacerbating fears about slowing growth and more expensive refinancing following years of stimulus," said Michael van Dulken, head of research at Accendo Markets, in a note.
Here's the roundup:
US markets are falling, with the S&P 500, the Dow and Nasdaq falling about 0.8%. The S&P 500 is now heading for a 10% slump for the year, its worst since the financial crisis.
In Asia, China's Shanghai Composite closed up 0.4% while Australian markets closed up 0.5%. MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.5% to its lowest in seven weeks.
In Europe, stocks slipped amid weak trading with a number of exchanges closed on Christmas Eve with most closing early. The FTSE 100 fell 0.6% and the French CAC 40 tumbled 1.5%.
The dollar fell 0.3% and gold rose while Brent Crude oil and WTI are both down at least 0.8%
The US 2-year and 10-year Treasuries yield curve flattened to 14 basis points Friday, indicating bond market concerns about slowing global growth and highlighting greater recessionary fears in credit markets.