U.S. stocks slid, following equities’ biggest gain since May, as China’s currency devaluation sparked concern across global markets that the world’s second-largest economy is headed for a deeper slowdown.
The Standard & Poor’s 500 Index declined 0.9 percent to 2,084.35 at 4 p.m. in New York, with the gauge holding above its average price during the past 200 days.
China devalued the yuan by 1.9 percent, the most in two decades, after data this month showed a plunge in exports, weaker-than-estimated manufacturing and a slowdown credit growth. The surprise move rippled through global markets, sparking selloffs in emerging-market currencies, commodities, and auto and luxury stocks with exposure to China.
A rally in commodities from oil to copper helped the S&P 500 jump 1.3 percent Monday. Those trades largely reversed today on concern demand from China, the world’s biggest consumer of energy and metals, will slow and yuan weakness will erode the buying power of Chinese consumers. Similar worries about the country’s growth helped send the benchmark index down as much as 4 percent last month from its May record.
Source : Bloomberg
U.S. stock-index futures slid, indicating equities will fall, after China devalued its currency by the most in two decades.
Kraft Heinz Co. retreated 1.7 percent in early New York trading after second-quarter sales missed estimates. Google Inc. advanced 6 percent after saying it will reorganize into a holding company to be called Alphabet Inc. that gives its main Web operations greater independence.
Standard & Poor’s 500 Index E-mini contracts expiring next month declined 0.6 percent to 2,086.25 at 10:41 a.m. in London. Stocks gained the most in three months on Monday after Warren Buffett’s Berkshire Hathaway Inc. agreed to buy Precision Castparts Corp. and commodity-related shares rallied. Dow Jones Industrial Average futures slid 116 points, or 0.7 percent, to 17,437 today.
China devalued the yuan by 1.9 percent after data this month showed a plunge in exports, weaker-than-estimated manufacturing and a slowdown credit growth. The surprise move rippled through global markets, sparking selloffs in emerging-market currencies, commodities, and European auto and luxury stocks with exposure to China.
General Motors Co. slipped 0.9 percent and Ford Motor Co. lost 1.1 percent.
Investors will also look to corporate releases, as the earnings season draws to a close. Symantec Corp., Cisco Systems Inc. and News Corp. are among companies posting quarterly updates this week.
Of the S&P 500 members that have already reported, 74 percent beat profit estimates and about half topped sales projections. Analysts now project a more modest drop in second-quarter earnings, calling for a 2.1 percent fall instead of a 6.4 percent decline a month earlier.
Source : Bloomberg