Wall Street gives back some Xmas season gains in thin liquidity

Wall Street was in the red on Wednesday, giving back some of the Xmas upside and thin liquidity can exaggerate the moves, while typically there are little fundamentals out there as we approach the end of 2016.

Dow Jones Index drops to weekly lows

The Dow Jones Industrial Average lost a significant 111.36 points to finish at 19,833.68, losing around 0.6% on the day and moving further away from the psychological 20,000 milestone. The S&P 500 lost 18.96 points, or 0.8%, closing at 2,249.92. Meanwhile, after a record close on Tuesday, the Nasdaq Composite Index also dropped 48.89 points to 5,438.56, down 0.9% on the day.

Heads up for 2017 - Societe Generale:

Kit Juckes, economist at Socgen explained: "Excitement about Donald Trump's presidency and a shift in the global monetary/fiscal policy balance; concern about China's ability to keep the economy on track and control the pace of capital outflows; fear or further gains by populist politicians in this year's elections, in France, Germany and Italy; A nagging sense that then bond market adjustment that is now underway has further twists and turns in store as borrowers and FX hedgers scramble for dollars. There are loads of emotions that can dominate the market moods in the days ahead, and lots to ponder. "