That was the opinion of some US investment strategists after another free-fall on China’s main stock market reverberated around the globe Thursday and sent the Dow Jones average to a loss of almost 400 points.
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Netflix made the biggest gain in the S&P 500.
NEW YORK, Jan 6 Stocks across the world fell on Wednesday as China fuelled fears about its economy by allowing the yuan to weaken further and after a nuclear test by North Korea added to a growing list of geopolitical worries. The offshore yuan fell to a fresh record low since trading started in 2010, while local stock markets were suspended less than half an hour after opening, the second emergency suspension this week.
That’s one reason European and Japanese stock indexes have fallen even more than US markets this week. The Nasdaq composite rose 27 points, or 0.6 percent, to 4,716.
Earlier this week, Seoul shares suffered a setback as China’s stock rout re-emerged on concerns over a slowdown in the world’s No. 2 economy. The stock declined 70 cents, or 6 percent, to $11.09.
Shares of Apple briefly dipped below $100 for the first time since August 24 and the stock was the biggest drag on both the S&P 500 and Nasdaq.
At home, the FTSE 100 shed 63.86 points to close 1.04 percent lower at 6,073.38.
Smith & Wesson rose $3.13, or 13.4 percent, to $26.41 and Sturm Ruger added $5.21, or 8.5 percent, to $66.60.
Chinese authorities have been trying for months to restore confidence in the country’s stocks after a plunge in June rattled global markets and prompted a panicked, multibillion-dollar government intervention.
“News that the Chinese Caixin services PMI came in much lower than expected overnight has stirred fears that in addition to the already struggling manufacturing sector, services are also starting to be in trouble which would certainly not only deepen China’s economic woes but also put the likelihood of a sustained economic rebound several months back”. Thursday’s selling was linked to weakness in the yuan, as the government’s decision to let the currency get weaker may be a bad sign for the health of China’s economy. Those halts, which were triggered twice this week, are increasingly seen as inadequate measures to prevent volatility.
ENERGY: Crude futures stabilized, with benchmark US oil adding 9 cents to $36.06 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the benchmark for global oils, lost 48 cents to $33.75 a barrel in London.
Hong Kong’s Hang Seng shed 2.4 percent to 20,479.39 and Australia’s S&P/ASX 200 retreated 2 percent to 5,020.40. Those prices have been falling for years, but gold prices have recovered recently and are at their highest price in about two months. Chipotle also disclosed that sales at restaurants open at least one year plunged 30 percent in December in the wake of an E. coli outbreak that affected dozens of restaurants and a norovirus outbreak in one location in MA.
Homebuilder KB Home slumped after its fourth-quarter results fell short of Wall Street estimates.
Some retail stocks performed well.
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Yahoo was down 1.2 percent at $31.78 after investor Starboard said the company should change its management, board and its business strategy. Urban Outfitters climbed 68 cents, or 3.1 percent, to $22.60.
