Caption + Specialist Ronnie Howard, center, works on the floor of the New York Stock Exchange, Tuesday, Jan. 5, 2016.
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Meanwhile, gun stocks rallied (http://www.marketwatch.com/story/gun-stocks-rally-as-obama-outlines-new-measures-2016- 01-05)for a second day, as investors bet that new restrictions to be rolled out by President Barack Obama not only wouldn’t deter sales but would propel them.
Panic selling, mostly by China’s army of small retail investors, sent the country’s shares diving 7 percent on Monday, the first trading day of 2016, That set off a worldwide reaction, pushing MSCI’s global index 2 percent lower.MIWD00000PUS.
Earlier in Asia, China’s Shanghai Composite Index finished down 0.3 percent at 3,287.71 after wavering between gains and losses.
S&P 500 e-minis were down 13 points, or 0.65 percent, with 195,236 contracts traded. At 0915 GMT the FTSE pan-European index was flat at 1,401 points after Monday’s 2.5 per cent fall. Hong Kong’s Hang Seng was down 0.7 percent to 21,188.72 but South Korea’s Kospi outperformed its peers, ending the day 0.6 percent higher at 1,930.5.
China’s markets went on a roller coaster ride Tuesday, moving in all directions and closing mixed following a sharp selloff in the previous session.
A global recession would likely kill the bull market in US stocks, which are trading at expensive valuations despite logging their worst year since 2008.
NEW YORK (AP) – U.S. stocks are opening modestly higher as trading stabilizes a day after a plunge in China unsettled investors around the globe. “However, the trend of slowing growth as manufacturing continues to perform poorly is clearly worrying traders”, Shah said.
“The local stock market suffered a setback following a stock rout in China, but such negative impacts seem to be easing”, said Kim Yong-ku, an analyst at Samsung Securities. Saudi Arabia said Sunday it is severing diplomatic relations with Iran, a development that could potentially threaten oil supplies.
On Monday, all three benchmarks posted steep losses, with the S&P 500 marking the worst start to a new year (http:// www.marketwatch.com/story/dow-industrials-hasnt-started-the-year-this-horribly-in-84-years-2016-01-04) in more than a decade. Consumer prices rose 0.2 percent, against a median forecast of 0.3 percent.
US crude attempted slight gains to trade around $36.80 a barrel, while Brent held a touch lower near $37.20 a barrel, as of 8:27 a.m., ET.
The dollar index rose 0.14 per cent, while the euro fell towards a one-month low against the greenback, down a quarter of a per cent. The yen inched up 0.2 per cent but stayed off Monday’s highs.
Advancing issues outnumbered declining ones on the NYSE by 1,781 to 1,281, for a 1.39-to-1 ratio on the upside; on the Nasdaq, 1,412 issues rose and 1,379 fell for a 1.02-to-1 ratio favoring advancers.
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