Materials stocks fell more than the rest of the market as prices for metals and other commodities dropped.
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The dollar tumbled 1.5 percent on the yen on Wednesday, suffering its biggest drop since December.
Specialist William Bott works on the floor of the New York Stock…
European trading got off to a steady start, even though stocks had plunged 6.75 percent in China, where the country’s regulator warned investors were being gripped by “panic sentiment”.
Beijing, which has struggled for more than a week to bend the market to its will, unveiled yet another battery of measures to arrest the sell-off, and the People’s Bank of China said it would step up support to brokerages enlisted to prop up shares.
ANALYST TAKE: “There is clearly a lot of work to be done and the latest developments only seek to dent investor confidence”, Bernard Aw, market strategist at IG in Singapore, said of the Chinese situation. They have until the end of the day, Brussels time, to submit a detailed report on proposed reforms.
The Swiss franc, another traditional safe-haven currency, also rose but its gains were limited, with speculation the Swiss National Bank was intervening to stem the currency’s appreciation.
“It’s uncommon to see so many shares posting consecutive daily limit falls, and the index futures swinging so wildly”, said Wang Feng, CEO and founder of hedge fund firm Alpha Squared Capital Co. and a ex- Wall Street trader.
The yield on the 10-year USA Treasury note last stood at 2.210 percent, below its USA close of 2.231 percent on Tuesday, when it dropped to a five-week low of 2.185 percent. The Dow Jones industrial average climbed 93.33 points, or 0.5 percent, to 17,776.91.
The currency rallied 1.5 percent this week against the euro, and reached $1.0916, the strongest since June 2. The dollar fell to 122.18 yen from 122.68.
USA benchmark West Texas Intermediate for August delivery rose 49 cents to $53.02 a barrel and Brent crude for August advanced 67 cents to $57.21.
CURRENCIES: The euro inched down to $1.0987 from $1.1040.
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“If you sell up every time there is bad news out there, and buy back in when things look rosier, you’re probably going to lose out in the process”.
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