Asian shares crept off four-year lows on Wednesday as China’s efforts to stabilize its currency brought a moment of calm to equity markets, even as oil marked a sorry new milestone under $30 a barrel. USA stocks moved slightly lower in early trading Thursday, extending losses following the worst market drop since September.
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The Dow Jones industrial average was flat at 16,148 as of 9:35 a.m. Eastern time. The Nasdaq edged down 13 points, or 0.1 percent, to 4,512.
The Standard & Poor’s 500 index gained 31 points, or 1.7 percent, to 1,921.
China’s Shanghai Composite Index, which was volatile during the day, was trading down 1.09% at 2,917.52. Benchmark U.S. crude fell 58 cents to $30.62 per barrel in NY.
Gold rose $1.90 to $1,087.10 an ounce, silver rose 41 cents to $14.16 an ounce and copper was little changed at $1.96 a pound. In Hong Kong, the Consumer Staples sector pushed the index lower with Want Want China Holdings Ltd. stock declining by 4.79%.
Shares rose Wednesday in Asia after China reported improved exports in December, though a rally in Shanghai shares was short-lived. The turbulent run reflects mounting worries on Wall Street about the slowdown in China, plunging oil prices and the implications for US corporations.
The yen rallied in Asia Thursday as traders fled higher-risk assets, pushing down emerging currencies as a rout that has swept global markets at the start of the year resumed. South Korea’s Kospi and Australia’s S&P/ASX 200 added 1.3 percent.
US DATA WATCH: Investors may get more insight into how the USA economy and Corporate America are doing on Friday. Several big banks, including Citigroup and Wells Fargo, are also scheduled to release quarterly earnings. No major US companies are due to post results on Wednesday, but Infosys (National Stock Exchange of India: INFY-IN), a major employer in the states, will report after the market closes.
The consensus estimate calls for a 1.4 percent month-over-month decline in import prices, while export prices may have declined 0.5 percent.
KEEPING SCORE: Japan’s Nikkei 225 rebounded after a steep fall in the previous session, gaining 0.7 percent to 17,367.22.
According to MSCI global indexes BRIC and other emerging market indexes have bled the most so far this year; the BRIC index has lost 7.2 percent and emerging markets 6.8 percent.
London equities shed 2.0 percent before an interest rate decision from the Bank of England, which is forecast to keep British borrowing costs at a record-low 0.50 percent.
Precious and industrial metals future closed mixed. French media reported that the CGT Renault union revealed raids on multiple sites focusing on engine monitoring that suggested a link to Volkswagen, the German auto giant embroiled in an emissions scandal in the U.S. Yields on 10-year paper fell 6 basis points to 2.10 percent having touched a 10-week low.
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In currency trading, the euro fell to $1.0862 from $1.0876, while the dollar rose to 118.15 yen from 117.78 yen.
