Two days ago, after the circuit breakers shut down trading, China closed its stock market early due to a steep decline.
Advertisement
The country’s stocks are falling so fast that they’re panicking investors and tripping automatic levers called “circuit breakers” that shut down the entire market when it’s crashing.
China struggled to shore up shaky sentiment on Tuesday a day after its stock indexes and yuan currency tumbled, rattling markets worldwide…
The FTSE 100 slipped by more than 100 points, or over 2%, to 5,900, nearing levels previously seen in December.
This sent China’s blue-chip CSI 300 index down 7.21 per cent at 3,284.74 points.
The benchmark Shanghai Composite Index fell 7.3 percent to 3,115.89.
Monday’s 7% plunge in the Shanghai market, which led to the suspension of trading for the first time, triggered a global equities rout.
The circuit breaker suspended trade for 15 minutes when the market fell 5 percent and halted it for the day after a fall of 7 percent.
Japan’s benchmark Nikkei 225 index lost 1.3 percent to 18,144.99 and South Korea’s Kospi slid 0.5 percent to 1,920.16.
Regulators in China called an end to trade within just half an hour of the opening after the People’s Bank of China (PBoC) weakened the value of its yuan currency by 0.51% against the dollar.
Stocks wavered between small gains and losses. There were early concerns that there could be more of the same, as the Shanghai Composite Index opened more than three percent lower on Tuesday.
Government measures introduced past year to prop up share prices after a meltdown in June are being gradually withdrawn while investors are also unnerved by possible signs China’s economy is in worse condition than thought.
Oil prices have plunged below $34 a barrel – the lowest settle since 2008.
The market was also helped by statements from at least 30 companies saying their controlling shareholders or senior executives would not sell shares on the secondary market within the next six or 12 months.
Meanwhile, Brent crude prices hit new 11-year lows on oversupply concerns, also weighed on investors’ confidence.
In currency markets, the dollar fell to 117.56 yen from 118.67 yen in the previous day’s trading as investors bought the Japanese currency as a safe haven.
Advertisement
The euro rose to $1.0844 from $1.0788.
