In Europe, the FTSE 100 index of leading British shares was up 0.5 percent at 5,982 while Germany’s DAX rose 0.2 percent to 9,998. On Wednesday it closed at its lowest price since December 2008. Energy companies fell with the price of oil and drug stocks also slipped.
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FedEx was up 1.4 percent at $136.50 after the company and TNT Express said they had obtained unconditional approval from the European Commission for their proposed merger. Industrial stocks fell, and aerospace company Boeing lost $3.31, or 2.4 percent, to $135.52 and railroad operator Union Pacific shed 76 cents, or 1 percent, to $74.07. The Nasdaq has fallen six days straight.
China nudged the yuan higher for the first time in nine days on Friday, while traders welcomed the country’s decision to suspend a circuit breaker which halted trading twice this week.
“When you have a market that begins a year with weakness, people are sort of suspect anyway”. At one point it was down 442 points. All 10 S&P 500 sectors ended in the red, though, and the Nasdaq Biotech index.NBI fell 4.1 percent. The Nasdaq composite index lost 118 points, or 2.5 percent, to 4,716. The index fell to a new record closing low.
The Dow fell 168 points Friday, or 1%, to 16,347.
US stocks sold off further on Thursday, giving the Dow and S&P 500 their worst four-day starts to a year ever, dragged down by another drop in Chinese equities and oil prices at 12-year lows.
SK Hynix fell 1.66 percent and Samsung C&T retreated 0.7 percent.
The West Texas Intermediate for February delivery moved down 70 cents to settle at 33.27 dollars a barrel on the New York Mercantile Exchange, while Brent crude for February delivery decreased 48 cents to close at 33.75 dollars a barrel on the London ICE Futures Exchange.
However the price of copper declined 6.6 cents, or 3.2 percent, to $2.022 a pound. Financial stocks also slumped.
The benchmark US Treasury yield hit the lowest since late October, reversing an initial rise after the strong jobs data that also showed hourly earnings were unchanged versus expectations of a 0.2 per cent increase.
The Shanghai Composite Index was up 2.4% at 3,199.56 by late morning after swinging between gains and losses. Those fears have drowned out signs that the United States and Europe are doing fairly well.
“Another reason for weak trading in China is the rising skepticism on the Chinese economy and currency”, said Samsung Securities senior analyst Kim Yong-goo. Economic reports caused investors to worry about China’s manufacturing and service industries.
“China’s been such a big driver of global growth for 15 years and now they’re not, and they don’t seem to have a plan for the next 15 years”, said John Canally, chief economic strategist at LPL Financial.
DEPARTMENT STORES STRUGGLE: Department stores were among the biggest losers on the S&P 500.
Throughout the week, worries about China’s economy and shocks to its markets have canceled out positive news from the USA and Europe.
Specialist John O’Hara works at his post on the floor of the New York Stock Exchange, Thursday, Jan. 7, 2016. Urban Outfitters climbed 79 cents, or 3.6 percent, to $22.71.
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The report has brought mostly good news in recent months. Macy’s lost 88 cents, or 2.4 percent, to $36.01. Its stock has plunged 84 percent over the last two years.
