SE Sensex today lost over 1,000 points at one point. The fall in share markets world over has its origin in certain fiscal predictions and financial state of Europe. But US President Donald Trump created panic with his, what is being held as unprecedented, attack on the Federal Reserve, the central bank of the country.
Another hike in interest rate by Federal Reserve is expected soon. And, this has left Donald Trump unhappy. The US markets were shedding loads on Wednesday and Wall Street witnessed a decline of over 800 points or 3.15 per cent. This was the biggest fall in the US markets in over eight months.
Trump said that the fall in stock market was a correct that I have been waiting for long but he launched a frontal attack on Federal Reserve calling it crazy. He said, “I think the Fed is making a mistake. They are so tight. I think Fed has gone crazy.”
Investors lost an estimated Rs 4 lakh crore within five minutes of opening trade today.
But financially, the latest trend originated in Europe where an Italian budget has brought back the fears of eurozone crisis. Italy has proposed a budget exceeding spending beyond the deficit limit set by the European Union – 2.4 per cent of GDP.
This led to tension among European Union members, which was reflected in the European bourses. Markets in Paris (France), Frankfurt (Germany) and London (the UK) reported major losses. French markets and Germany markets lost over 2 per cent of its value while in the UK, the loss was 1.3 per cent.