Massive Decline of Shares

Market Reviews

Equities are under serious selling pressure. DOW fell -1175.21 pts (-4.6%) at 24345.75. S&P 500 dropped -113.19 points (-4.1%) to 2648.94. NASDAQ was down -273.42 points (-3.78%) and closed at 6967.53. 10 year yield rose to the 4-year maximum of 2.862, but then reduced -0.60 to 2.794. Nikkei declined over -5.2%. Hong Kong HSI fell -4.3%. As of currencies, Japanese Yen is the firmest, while Pound is the weakest. Today, Germany will publish factory orders, Eurozone will issue retail PMI, the US will announce trade balance and Canada will present trade balance and Ivey PMI.

Yesterday, Mario Draghi testified before the European Parliament. The President stated that ECB will closely capture the dynamic of exchange rate and inflation. Draghi expressed his positive outlook of the economy, noting that the expansion is strong and growth rates improved. Meanwhile, British government detains the document on immigration system after Brexit, which causes resentment among businessmen.

Australian retail sales were down -0.5% mom in December. Trade balance marked the deficit of -1.36 billion of Australian dollars. Yesterday, Reserve Bank of Australia held a meeting. As projected, the interest rate stayed at 1.50%. Australian Dollar barely reacted at the news.