US stocks started Tuesday with small gains and losses.
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“Let’s face it, any negative vibe out of China has global ramifications”. China’s stock market lurched lower again Monday, triggering “circuit breakers” that halted trading. The Nasdaq Composite Index fell 11.66 points, or 0.24 percent, to 4,891.43, Xinhua news agency reported. Technical indicators “point to a likely renewed sell-off and a revisit of the late-August lows”, he said in a market commentary. That’s the 30- stock index’s worst start to a yearsince 2008.
The S&P 500 closed down 31 points, or 1.51 percent.
USA stocks fluctuated as global equity markets stabilized, following the worst year-opening performance for the Standard & Poor’s 500 Index in 15 years.
And the selling that began in Asia spread quickly and painfully to Europe.
With Apple’s stock appearing to carve out what some traders are calling a very unsafe “head and shoulders trading pattern”, a re-acceleration of the China stock crash represents a huge downside risk to Apple shareholders.
The benchmark Shanghai Composite plummeted almost 7%.
– July 8: Regulators announce insurance companies will be allowed to invest more in stocks. Oil fell below $35 in mid-December, causing stock prices to fall. It marks the 10th month in a row of sub-50 readings, which indicate deceleration.
“I think there’s this theory going around that the global economy is going to slow greatly, driven by a large slowdown in China”. But the problem is no one knows just how bad it really is because Chinese government stats are notoriously unreliable.
Additionally, investors pointed to the brisk decline in China’s currency. Overall experts say corporate earnings could grow about 7% in 2016, compared with a 1% growth number for 2015, but analysts note that the first half of this year will be choppy.
“Everybody wants their money before it shuts”, Kelly said.
But it’s clear that right now China reigns as the biggest influence on Wall Street. Brent futures fell $2.19, or 6%, to end at $34.23 a barrel in London, the lowest close since June 2004. Manufacturing continues to be hurt by the strong US dollar, which makes American goods more expensive for overseas buyers.
Crude oil prices rose after a breakdown in diplomatic ties between Saudi Arabia and Iran raised concerns of supply restrictions, while gold jumped more than 1.5 percent as investors fled to the safe-haven metal.
As if that wasn’t enough, Iran and Saudi Arabia are back at each other.
Tensions in the Middle East also unnerved investors.
Chipotle fell 1.6 percent to $441.90 after the company said an incident involving norovirus, would further hurt same-store sales in the fourth quarter, leading to a 14.6 percent fall. Oil closed down nearly 1% to $36.76 a barrel.
Not everything fell on Monday though.
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Spot gold added 0.4 per cent to $US1,078.32 an ounce.
