International markets roundup: Wall St rallies
Overnight markets were impacted by fears about the Chinese economy overnight.
NEW YORK – US stocks have finished mostly higher as an afternoon rally led by Apple and energy equities overcame early weakness on fears about an economic slowdown in China.
The Dow Jones Industrial Average finished essentially flat at 17,402.51 on Wednesday, down about one-third of a point.
The broad-based S&P 500 added 1.98 (0.10 per cent) at 2,086.05, while the tech-rich Nasdaq Composite Index rose 7.60 (0.15 per cent) to 5,044.39.
“The market made a nice turnaround,” said Peter Cardillo, chief market economist at Rockwell Global Capital. “Obviously it’s still about China.”
US stocks spent much of the day in the red due to fears that Beijing’s devaluation of the yuan signals that China’s economy is weaker than thought. The Dow was down more than 275 points early in the session.
LONDON – European stock markets have fallen at the start of trading, largely mirroring the performance across Asia after China further devalued its currency and reported more poor data.
London’s benchmark FTSE 100 index on Wednesday dropped 0.76 per cent to 6,613.86 points compared with Tuesday’s close.
Frankfurt’s DAX 30 slid 1.26 per cent to 11,151.72 points and the CAC 40 in Paris shed 0.93 per cent to open at 5,051.49.
Asian shares fell on Wednesday after China cut the yuan’s value against the US dollar for a second day, fuelling concern about the world’s second-largest economy and driving expectations that the currency could fall further.
HONG KONG – Asian shares have tumbled as investors fretted over the impact a second cut in China’s currency in as many days will have on economies closely tied to the Asian giant.
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The US dollar declined slightly in Tokyo trade on Wednesday after rising on news the People’s Bank of China had again reduced the value of the yuan against the greenback.
Hong Kong lost 2.38 per cent, or 582.19 points, to end at 23,916.02, while Shanghai dropped 1.06 per cent, or 41.59 points, to 3,886.32 while the Shenzhen Composite Index, which tracks stocks on China’s second exchange, fell 1.54 per cent, or 35.09 points, to 2,249.18.
Other regional markets also lost ground, with Tokyo closing down 1.58 per cent, or 327.98 points, at 20,392.77, while Sydney ended 1.66 per cent lower at 5,382.10. Seoul ended 0.56 per cent, or 11.8 points, lower at 1,975.47.
– AAP
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