Stock markets around the world remained under pressure Monday after US Treasury Secretary Steven Munich called the heads of the six largest banks on Sunday in an apparent bid to reassure financial markets – but ended only by stifling investors' fears.
In the weak Badnic trading, the Dow Jones Industrial Average was turned off more than 400 points, or more than two percent, fell below the 22,000 level for the first time in 15 months.
The wider S & P 500 dropped by almost one percent to 2,398, while Nasdaq-focused technology was also about one percent lower at 6,247.
Canada and United States markets near 1 am. ET Monday to mark Christmas Eve.
US stock markets have the worst month in a decade, while investors are worried about the prospect of growth in the wake of the escalation of the global trade war. The darkness prompted Mr Nachin to reach out to the chief executives of major US banks to confirm they have enough money to finance all their normal operations – although there were no serious liquidity-rising problems in the market.
Today I called individual calls with CEOs of the six largest banks in the country. See attached statement. pic.twitter.com/YzuSamMyeT
& mdash;@ stevenmnuchin1
The move was supposed to calm investors' fears, but it seems to have had the opposite effect.
"Steve Munich's meetings with decision makers will not provide much Christmas," said Chris Bowham, chief market analyst at IG.
"Mnochin is most likely worried about his work, but everyone else will conclude that there may be much more concern."
"Mnuchin tried with some damage control," said Win Tin, global strategy chief for Brown Brothers Harriman, in a remark, adding that the move could be restored.
"Yes, the markets are concerned about the recession, [but] By this weekend, however, markets were not so worried about liquidity or licensing. And with the markets on the edge, the last thing they needed was another matter you need to worry about, "Tan said.
It's not just about actions that were recently beaten. Oil fell to $ 44.55 a barrel on Monday. After briefly climbing $ 75 a barrel in October, US oil for the West Texas Intermediate was gradually shrinking from worries about growth.
The darkness of oil is a bad news for the TSX too, because the TSX dropped to its lowest level for more than two years at 13,875 on Monday, at 60 points a day. It is Canada's lowest index of indexes traded since the summer of 2016.
Sales were not limited to North America. France CAC 40 dropped 1.5 percent to 4,626.39, while the FTSE 100 index of leading British shares fell 0.5 percent to 6,685.99. The German DAX was closed.