The US financial markets were surprised by the information that the Treasury Secretary Steven Mnuchin had called the country´s largest banks. The question was about the market liquidity. According to the Treasury, the banks have confirmed that they have liquidity available for lending to consumers, business markets and other market operations.
The Treasury also confirmed that they will have a call on Monday, the Christmas Eve, with the President´s Working Group on financial markets. The reason for this call is the large market volatility.
According to Bloomberg and Reuters business wires, the markets are really surprised and the big questions is, whether there is systemic risk or not.
The financial markets in the US have had several days downside trend and for example the stock markets have fallen over 10 % in December and are now at the lowest level since May 2017. Another issue on the agenda, is the Federal Reserve and its interest rates policy, also the question of the position of the Federal Reserve´s Chairman Jerome Powell.
The US Goverment shutdowns, which have been going on for three days now, are expected to continue, while no news are in sight.
Today, the financial markets are open only for a shorter time and for example Nasdaq will be closing at 1 EST and NYSE will be closing at 4 EST. On Christmas Day, the 25th December, the markets will be closed.
Today, the markets have continued their fall and for example the Dow Jones has fallen 1,97 % to 22 003 points, S&P 500 -index 1,67 % to 2376 points and Nasdaq 1,16 % to 6259 points. For example the markets in the Nordic countries and German are closed.