In individual stock news, Next’s share price has shed 5.01 percent to 6,830.00pafter the retailer’s trading update fell short of expectations. The trading resumed at 1 PM local time and within half an hour, the index plunged 7%, which suspended trading for the rest of the day.
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Policy makers need to “gradually explore, gain experience and make adjustment” to circuit breakers, China Securities Regulatory Commission spokesman Deng Ge said in a statement on Tuesday.
There is also considerable pressure from major shareholders to regain access to the markets.
The Commerce Department issues global trade data for November at 8:30 a.m. ET. This revived concerns about the slowdown in the Chinese economy among investors that led to the worst inaugural session of 2016 and wiped out $590 billion from the exchanges.
“China’s economy is still growing at a rate that would be the envy of most countries, but that growth has been slowing more rapidly than many anticipated”.
Stocks in China rose today in volatile trading, stabilising after weaker factory data from the world’s second-largest economy sparked a worldwide selloff yesterday.
The latest slump comes after China’s government guided the yuan lower over several days, an indication authorities are prepared to weaken the tightly controlled currency to boost flagging exports.
Worries over the currency have intensified since a surprise devaluation in August.
“The big influence continues to be concerns about what’s going on in China”, said Stephen Massocca, chief investment officer at Wedbush Equity Management LLC in San Francisco.
On Monday, shares fell for two major commodity traders, Anglo American by about 7 percent, and Glencore by 5.8 percent. Last year’s Chinese stock boom and disastrous bust has left a legacy of public distrust of financial markets along with a bill the ruling party has yet to disclose for its rescue.
Beijing reacted forcefully, spending at least $236 billion to stop the slide.
Panicked Chinese leaders responded with interest rate cuts and promises state companies would buy stocks. In an effort to prop up the market, regulators organized the purchase of shares using cash supplied by the central bank.
“Those who put decreasing volatility on their Santa wish list have been left very much disappointed with weak global growth and geopolitical tension continuing to dominate investor sentiment”.
Oil prices plunged below $34 a barrel – the lowest settle since 2008.
China’s CSI 300 Index had just tumbled 5 per cent, triggering a 15-minute trading halt, and stock investors were scrambling to exit before getting locked in by a full-day suspension set to take effect at 7 per cent. When the first halt was lifted, the market reaction was swift: It took just seven minutes for losses to reach the limit as volumes surged to their highs of the day.
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“The moves seen in Chinese stock markets are quite concerning”, said Angus Nicholson, market analyst at IG in Melbourne, Australia.
