After weak data overnight, China’s Shanghai Composite index dropped 4.27%, and ignited more selling in Asia markets.
Advertisement
Investors ditched beaten-down oil companies. They also were selling shares of the biggest winners of 2015.
Around £46 billion was wiped off the value of London’s top listed companies.
The Dow fell into correction mode, down 10% from its most recent high point on May 19.
Six stocks fell for every one that closed higher on the NYSE; on the Nasdaq, the ratio was about 2-1/2 decliners for every 1 advancer. Here are some of the factors affecting U.S. markets: 1.
“The fact is the global economy isn’t strong, and some of the major consumers of oil – China and India – are seeing slow growth“, he said. It means it can sell more units now as the investors bail out on Chinese Market post its stock-decadence.
In the past two weeks, world markets tumbled as investors grew concerned about developments in China – which unexpectedly devalued its currency last week – and the outlook for the economies of other large developing countries. The Dow plummeted over 1,000 points this past week – the worst week since 2011.
On the bright side, the U.S. economy is looking healthier lately.
The fall in oil prices is hurting U.S. energy stocks too.
“All of this is coming at a time when we haven’t had a correction” in many years, Zirin said.
Federal Reserve Interest Rate – While the majority of the focus is being placed on China, I believe that the Federal Reserve is also playing a role in the negative movement we’re seeing in the market. “But if the meeting was tomorrow, it’s probably fair to say that they wouldn’t tighten given all the turmoil in the global markets”.
The central bank may try to estimate the impact of a falling stock market on the wealth and spending habits of US households.
As a result, the Fed might decide to wait until later in the year, or longer.
The question policymakers face in September is “how combustible” financial markets will be if the Fed decides to raise the benchmark rate, said Lou Crandall, chief economist at Wrightson ICAP LLC.
“Today’s markets are driven by fear, with a lot of momentum shares seeing a retracement”, said Myles Clouston, senior director at Nasdaq Advisory Services.
Major markets in Europe finished with deep losses Friday. In Britain, the FTSE 100 index was down 2.8 percent. The Nasdaq Composite shed 3.5% to 4706.04.
Hong Kong fell 1.53% to finish the day at 22,409.62 points – its lowest point since May 2014. US gold futures for December delivery settled up 0.6 percent at $1,159.60 an ounce. “It’s $2.08 per gallon”.
The global losses reflect concern over falling oil prices, which have dropped below $40 per barrel of crude – the lowest price since the global economic crisis – as worldwide oil supplies continue to outpace demand.
The preliminary manufacturing index for August fell to 47.1, the lowest since March 2009, compared with the 48.2 estimate in a Bloomberg survey of analysts.
Deere fell 8.1 percent to US$83.31 after the tractor maker’s quarterly profit slumped 40 percent. Yields fall as bond prices rise. “All Is Well!” – but it’s more than fair to say that the wire service’s Matthew Craft and Bernard Condon allowed quite a bit of wishful thinking into their writeup.
This comes just a week after the devaluation of the renminbi and in the wake of a sharp plunge in the Chinese stock market, adding to mounting concerns about the health of the Chinese economy.
Advertisement
This article includes information from Bloomberg News.
