View the article online at http://citywire.co.uk/money/article/a872222
Overnight Markets: Dow has worst four-day start to a year ever
A collapse in China’s ailing stock market spread like contagion across the globe, with Wall Street tumbling more than 2%.
US stocks plunged on Thursday, giving the Dow Jones and S&P 500 their worst four-day starts to a year ever, as a collapse in China’s ailing stock market spread like contagion across the globe and billionaire investor George Soros warned that a larger crisis may be brewing.
The Dow Jones industrial average closed down 392 points, or 2.32%, to 16,514, the S&P 500 had lost 47 points, or 2.37%, to 1,943 and the Nasdaq Composite had dropped 146 points, or 3.03%, to 4,689.
Chinese stocks traded for less than 30 minutes, slumping 7% and triggering the second emergency market closure this week. The action prompted markets in Europe to retreat and then spread to the US.
Beijing allowed the biggest fall in its yuan currency in five months, adding to investor fears about the health of its economy.
Soros, speaking at an economic forum in Sri Lanka, drew similarities between the present environment and the financial crash of 2008. He said global markets were facing a crisis and investors needed to be very cautious, Bloomberg reported.
Oil prices tumbled to 12-year lows and copper prices touched their lowest since 2009, weighing on energy and materials shares. Shares of Freeport McMoran (FCX.N) fell 9.1%.
Apple (AAPL.O), which generates a lot of its business in China, fell 4.2% to its lowest level since the August market swoon.
Yahoo (YHOO.O) plunged 6.2% after a report the company was working on a plan to cut its workforce by at least 10%. Alibaba (BABA.N), in which Yahoo has a stake, was down 6%.
In the financial sector, JP Morgan Chase slid 4%, while Nordstrom tumbled 5.5%.
Investors also braced for Friday's US government jobs report, which could show how well-insulated the US economy is from international stresses.
In Asia, share markets rallied briefly on Friday after China opened in positive territory but some major markets were back in the red soon after.
The Shanghai Composite was up as much as 3% shortly after the market open before sliding into negative territory, down 1.61%.
Elsewhere, Australian markets slipped lower, with the ASX 200 down 0.46%, Japan's Nikkei 225 higher 0.37%, while Korea's Kospi index was down 0.15%. In New Zealand, the main index was down 1.3%. In Hong Kong, the Hang Seng Index added 0.89%.
News sponsored by:
Here at BlackRock, we help investors make more out of commodities with a range of innovative, flexible and resilient investment strategies.
From Brazil and Mexico, to Vietnam and Nigeria, the rapidly developing economies of Latin American and frontier markets, which are some of the smaller, less developed economies in the world, provides investors with a wealth of potential opportunities. Discover why BlackRock's investment trust range is well placed to help you make more of these exciting regions.
In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.
More about this:
Tools from Citywire Money
From the Forums
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add email@example.com to your safe senders list so we don't get junked.
by Gavin Lumsden on Oct 23, 2016 at 00:01