View the article online at http://citywire.co.uk/money/article/a871753
Overnight Markets: Wall Street ends slightly higher after China turmoil
Telecoms, utilities and consumer staples led the gains, while information technology was the worst performing sector on the S&P 500.
Wall Street closed modestly higher on Tuesday, snapping a three-day slump, as investors remained cautious after a sharp selloff that kicked off the year.
The Dow Jones Industrial Average inched up 10 points, or less than 0.1%, to 17159. The S&P 500 gained four points, or 0.2%, to 2017 but the Nasdaq Composite dropped 12 points, or 0.2%, to 4891.
All three indexes opened slightly higher but turned negative in morning trade. Fears about a slowdown in China appeared to recede on Tuesday, but muted gains highlighted investors’ low expectations for 2016. In a bid to stabilise its markets, the People's Bank of China on Tuesday injected $20 billion into the financial system. Yesterday, the Shanghai composite swung in a 4% range before closing down about 0.3%.
In the US, telecoms, utilities and consumer staples led the gains, while information technology was the worst performing sector on the S&P 500 on Tuesday, followed by consumer discretionary and materials.
Oil companies also declined with Ensco PLC tumbling 6.4%, Transocean Ltd. shedding 3.1% and Diamond Offshore Drilling Inc. down 4.8%.
Apple’s shares fell 2.5%, down for a second session on continuing fears about slowing demand for the iPhone and weakness in China.
Gun stocks rallied for a second day as investors bet that new restrictions announced by President Barack Obama not only wouldn’t deter sales but would propel them. Smith & Wesson shares surged 11% and Sturm, Ruger & Co. climbed 6.8%.
Gilead Sciences Inc rose 1.7% after its experimental hepatitis B drug was found safer than, yet as effective, as its approved treatment Viread. Wal Mart Stores Inc shares were up 2.3%.
In Asia, stocks retreated on Wednesday in morning session after China set a weaker fix for the yuan, underscoring concern that the region’s largest economy may struggle to regain momentum.
The MSCI Asia Pacific Index was down 0.5%, after losing almost 3% over the past two sessions. Japan’s Nikkei Stock Average 225 plunged 1.21%, while the Kospi index fell 0.72% in Seoul.
Australia’s S&P/ASX 200 Index tumbled 1.2%, led by technology and mining stocks. In China, the Shanghai Composite Index was up 0.50%, while Hong Kong’s Hang Seng Index fell 0.74%.
News sponsored by:
After Boris announced he was backing Brexit, sterling suffered its biggest slump in six years. Our Market Mavens discuss. Follow the Market Mavens LinkedIn page for weekly videos, in which our panel of industry experts share their views on financial news
More about this:
Tools from Citywire Money
From the ForumsForums are temporarily down for maintenance.
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 Jul 22, 2016 at 16:24