Circuit breakers are commonly used on major markets in the US and elsewhere.
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The Canadian dollar remained below 71 cents US near 12 1/2-year lows. Energy and raw-material companies led the selloff as Brent crude oil dropped below $35 a barrel to its lowest since 2004.
Most Asian stock markets declined Wednesday after a North Korean nuclear test unnerved investors and a poor Chinese economic report dampened sentiment.
The losses mark one of the worst starts to a trading year for decades as investors’ nerves are shattered by a flawless storm of weak global growth – particularly in China – a slump in oil prices to more than 11-year lows and geopolitical tensions.
Apple, the world’s largest publicly traded company, had its biggest loss in four months. The Shanghai Composite rose 2 per cent at 3,186.41 points, while the smaller Shenzhen Composite advanced 1.1 per cent at 1,978.72 points.
Chinese stocks were volatile Friday and other Asian markets rebounded after a plunge in Chinese prices…
The Chinese government spent at least 1.5 trillion yuan ($236 billion) on the 2015 market bailout, according to analysis by Goldman Sachs.
Financial markets fear the yuan’s rapid depreciation may mean China’s economy is even weaker than had been imagined, and could therefore spark another wave of competitive devaluations around Asia and in other key economies. But observers say they also signal that China’s leaders are concerned about the economy.
Other Asian markets also declined, as Tokyo’s Nikkei Average lost 1.7 per cent, Sydney’s S&P/ASX200 skidded 2.1 per cent, and Seoul’s Kospi Composite Index moved down 0.9 per cent.
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. Wall Street was poised for a solid open, with Dow futures and the broader S&P 500 futures up 1.3 percent.
DOLLAR BOUNCE: The dollar firmed further following the figures as traders priced in the prospect of more interest rate hikes: The euro was down 0.8 percent at $1.0825 while the dollar was 0.6 percent stronger at 118.51 yen. Thursday’s market plunge may have been exacerbated by investors rushing to sell before they were locked out, some analysts said.
The circuit-breaker policy, first announced in December, triggers a 15 minute trading halt whenever there is a 5 percent rise or fall in the CSI 300. The trading halt mechanism is based on whether that index swings more than 5 percent up or down.
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“There was some apparent panic selling with investors trying to reduce exposure before the mandatory triggers entered into effect”, said Gerry Alfonso, trading head at Shenwan Hongyuan Securities in Beijing. The six-month-old ban was due to expire at the end of the week, which would have increased selling pressure. “Therefore, in order to maintain market stability, CSRC has made a decision to suspend the circuit-breaker mechanism”, a statement from the China Securities Regulatory Commission (CSRC) said.
