A quiet state of calm domiated on world markets as Christmas holidays continued for the second day in a row, but a state of caution and frustration dominated most investors after global markets suffered the worst Christmas Eve, despite US Treasury Secretary Manuche attempts to prevent Wall Street down. The Dow Jones industrial average fell by 653 points.
Investors were worried about US policy developments, including the closure of the US federal government and President Donald H. Trump's hostile attitude toward Federal Reserve Chairman Jerome Powell while continuing to raise interest rates. Global equity markets are headed towards the end of the year in a heavy cloud after another defeat this week, as US political uncertainty raised concerns about slowing global economic momentum.
Trump said he remained confident in the US Treasury secretary and blames Powell, who is believed to be raising interest rates at a rapid pace and could push the economy to slide into recession soon, as it is the main reason for the appreciation of the US dollar and the export sector is hurt by the rise.
On the other hand, partial government closures are expected to continue for some time as the protracted standoff over Donald Trump's demand for the border wall continues. Donald Trump celebrated Christmas Day by insisting that the closure continue until his request for funds to build a wall on the US-Mexico border is met. The closure is partly because 75% of government funding has already been approved in the budget year that began in October accounting for 25% of the government's disputed spending.
