The Standard & Poor’s 500 Index fell the most in two weeks, led by a selloff in energy shares, after worsening economic data from Asia reignited concern over the outlook for global growth.
Commodity companies and banks, pillars of the market’s recent gains, paced declines. Energy producers in the S&P 500 fell the most in six weeks as oil retreated, and the Russell 2000 Energy Index had the biggest drop since November 2014.
The S&P 500 dropped 1.1 percent to 1,979.28 at 4 p.m. in New York, its first decline in March to end its longest winning streak in five months.
Equities fell Tuesday as data showed Japan’s economy and Chinese exports are shrinking, reviving anxiety that monetary policy won’t be enough to support global economy. The declines also come after the S&P 500’s best three-week stretch since 2014, as investors reined in risk-taking before gatherings of central bankers in Europe and the U.S.
Source : Bloomberg
Japanese stocks fell for a fourth day, extending a global slide that’s seen shares post their worst start to a year since 2000, after China again cut the reference rate for the yuan and trading in the world’s second-biggest equity market was halted.
The Topix index sank 2.1 percent to 1,457.94 in Tokyo to close at the lowest level since Oct. 2, as energy explorers led declines after the price of oil tumbled. The Nikkei 225 Stock Average dropped 2.3 percent to 17,767.34, falling below the 18,000 mark for the first time since Oct. 15. The yen traded at 17.64 per yuan in offshore trading, near the highest since 2014, after China’s central bank cut its currency’s reference rate against the dollar by 0.5 percent.
Chinese stocks closed early after the CSI 300 Index slumped 7.2 percent, triggering an automatic halt, the second time trading has been stopped this week. Brokerages in Shanghai reported they were being besieged with calls from angry clients complaining about the market drop.
The weakening of the yuan is signaling the People’s Bank of China is becoming more tolerant of a depreciating currency as the economy slows. The MSCI All-Country World Index ended the first three days of 2016 down by 3.3 percent, its worst beginning to a year since 2000.