Trading halted only 13 minutes into the morning session Thursday.
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A investor rests near a display board showing the plunge in the Shanghai Composite Index at a brokerage in Beijing, China, Thursday, Jan. 7, 2016.
The minutes from the US Federal Reserve’s December 15-16 monetary policy meeting, released late Wednesday, showed many policy makers were reluctant to raise US interest rates for the first time in more than a decade. China’s market circuit breakers have been criticized by analysts for exacerbating declines as investors scramble to exit positions before getting locked in by the halts.
SHANGHAI China accelerated the devaluation of the yuan on Thursday, sending currencies across the region reeling and domestic stock markets tumbling, as investors feared the Asian giant was kicking off a virtual trade war against its competitors.
Other retailers were also down in line with a broad market sell-off, with Next falling 1 percent, Morrisons down 1.5 percent and Tesco slipping 2.9 percent.
An investor looks through stock information at a trading hall of a securities firm in Shenyang, capital of northeast China’s Liaoning Province, Jan. 7, 2016.
“Investors recognize that the PBOC’s actions serve as confirmation that China’s economy is slowing in a meaningful fashion, which has real repercussions on global… growth”, Mike O’Rourke, chief market strategist at JonesTrading, wrote in a note.
Tse noted technical support level for the Hang Seng Index would be around 20,300, but he forecast the market might fall further than that.
Ripple effects from the Chinese plunge were felt around the world.
The stop – activated when markets fall more than seven percent – was triggered on its first day Monday.
Nicholson said, “It’s hard to see the circuit-breakers surviving long in their current form, given they only seem to be further contributing to the volatility in the Chinese market”. Aerospace company Boeing lost $3.33, or 2.4 percent, to $135.50 and railroad operator Union Pacific shed 89 cents, or 1.2 percent, to $73.94.
Benchmarks in Taiwan, New Zealand and Southeast Asia also fell. Oil prices plunged below $34 a barrel – the lowest settle since 2008. Benchmark U.S. crude futures fell $1.39, or 4.1 percent, to $32.58 in electronic trading on the New York Mercantile Exchange. But the Thursday drop set off the circuit breaker again and Beijing intervened in the currency. The Chinese currency fell to a record low since trading started in 2010.
Other Asian markets also settled sharply lower.
Oil costs continued to slip on Tuesday regardless of rising tensions within the Middle East, with each the USA oil and Brent crude costs dropping greater than 2 %, because the U.S. greenback strengthened.
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Advancing issues outnumbered declining ones on the NYSE by 1,812 to 1,277, for a 1.42-to-1 ratio on the upside; on the Nasdaq, 1,473 issues rose and 1,342 fell for a 1.10-to-1 ratio favoring advancers.
