The US stock market index suffered sharp losses on the day before Christmas as investors reacted negatively to US Treasury secretary Steven Mnuchin’s highly unusual effort to reassure investors about Wall Street banks’ liquidity.
The S&P 500 finished the holiday-shortened day down 2.7 per cent at 2,351, more than 20 per cent below its previous intraday peak in September and 19.8 per cent below the closing high. It marks the worst Christmas Eve trading day on record.
Tokyo equities staged an eye-catching Christmas Day collapse on Tuesday, with stocks heavily sold on the newsflow from the US, which triggered a rally in the yen as the Japanese currency resumed its haven status in uncertain times.