5 December 2018 (8:53 am IST)
4 December 2018 (10:24 pm EST)
U.S. stock markets crashed in their overnight session and Dow Jones lost -800 points once those markets realized that they were rallying on wrong notions about the Fed’s rate plan and U.S-Chinna trade war talks.
These markets had rallied last week on false hopes of Fed’s rate hike pause and China- U.S. trade war resolution. Dow Jones had gained 1,000 points on those false hopes.Now when the reality has sunk in, that the Federal Reserve is still going for another rate hike in December and there is still no resolution in U.S.-China trade war, U.S. stock markets are inn a hurry to give up all those gains.
World stock markets are following in their footsteps by trading negative in today’s session in Asia. All major Asian stock markets are down, although not with as big margins as U.S. stocks. SGX Nifty had rallied big with U.S. stocks and now this Nifty futures index is down by nearly -60 points, indicating that Indian stock markets will also shed some of those false gains.
U.S. futures are trading marginally higher today inn Asia session but it is of no consequence as U.S. stock markets will remain close on Wednesday in mourning, in honor of President George H.W. Bush.
Expect world stock markets to trade with choppiness with weakness. This week and month’s trend has turned highly negative and intraday trend will also face the selling pressure within daily range.