The financial giant says that this could be worse than the ‘Black Monday.’ HSBC issued warning about looming financial crisis. The worldwide financial services and banking institution Hong Kong Shanghai Banking Corporation (HSBC) has issued a warning that a serious crisis may be looming on the global financial horizon. HSBC’s warning has come in the wake of the stock market indicators.
HSBC red alert for US stock market crash
HSBC alert US stock market crash has indicated that it could be worse than the ‘Black Monday’ crash of 1987. The head of technical analysis team at HSBC, Murray Gunn revealed the clients of the financial giant that a steep fall may occur in the stock markets. He said that this was based on the analysis of price action over the previous few weeks.
US market sells aggressively
HSBC announced that aggressive selling has been observed in US stocks that is why it was issuing a red alert. There is a very high possibility that a severe fall in the market should occur within the next few days.
Gunn further warned that the trend in the stock market was the same as it was observed just before the stock market crash in 1987. It is popularly known as ‘Black Monday’ and is regarded as the biggest stock market crash in history.
RT reported that the Dow Jones Industrial Average reported a loss of 22.6 percent of its values. Dow Jones is constituted by 30 large US companies that are traded publicly.
There are levels in the market that are intact for the time being. As long as they remain intact, there is hope, however, once they are breached and the market closes below, it would mean that there is serious trouble. Unfortunately, it seems that the market is sloping towards the dangerous levels.
HSBC stated that the market has been volatile since summer while the sell-off was evident in many areas across the market. The entire market is affected, rather than a few selected groups.
Only last month, HSBC had issued an orange alert warning. After Dow Jones declined by 200 points, Gunn issued the final red warning.