Wall Street drifts lower due to economic worries and Oil slump

Stocks in US fell sharply on Tuesday due to concerns faced related to economic growth in the wake of BREXIT  and correction in Oil prices.  The stock prices on Wall Street corrected sharply after posting their best weekly performance of 2016. 

Economic slowdown expected due to BREXIT has investors across the board worried, and there is a flight of capital to safe havens like the treasuries, even as demand for dollar improves. 

Banking stocks took the worst beating with 4 out of 5 banking stocks closing in red. The banking stocks are reacting negatively to the possible slowdown in the economic activity due to BREXIT. Also with shifting to negative interest rates, the impact is extremely negative on the spreads where the banks borrow and lend . The spread is getting narrower. 

The Dow Jones industrial average closed at 17,840.62 levels, down by almost 108.75 points or 0.61 per cent. At the same time the crude oil prices  (brent crude) dropped by 3.9 per cent as investors think that energy demand will not grow enough due to events like BREXIT.  

Asian markets on Wednesday are reeling under pressure with Hang Seng, Nikkie and Strait Times all trading down by anywhere between 0.3 per cent to 2 per cent on an intra-day basis. SGX nifty also is trading down by almost 50 points on an intra-day basis, indicative of a correction wave across the global markets.