This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.nytimes.com/2015/08/26/business/dealbook/daily-stock-market-activity.html
The article has changed 27 times. There is an RSS feed of changes available.
| Version 3 | Version 4 |
|---|---|
| Shanghai Stocks Continue to Dive as Global Markets Elsewhere Stabilize | Shanghai Stocks Continue to Dive as Global Markets Elsewhere Stabilize |
| (35 minutes later) | |
| ■ In China, the benchmark Shanghai composite index opened 6.4 percent lower. | ■ In China, the benchmark Shanghai composite index opened 6.4 percent lower. |
| ■ Most other Asian markets stabilized or rallied modestly, swinging from losses to gains. Japanese stocks opened sharply lower then seesawed. | ■ Most other Asian markets stabilized or rallied modestly, swinging from losses to gains. Japanese stocks opened sharply lower then seesawed. |
| ■ The international and American oil benchmarks rebounded tentatively, despite concerns about oversupply. | ■ The international and American oil benchmarks rebounded tentatively, despite concerns about oversupply. |
| ■ Stock markets in the United States traded in a volatile session on Monday, with the Standard & Poor’s 500-stock index closing down nearly 4 percent. | ■ Stock markets in the United States traded in a volatile session on Monday, with the Standard & Poor’s 500-stock index closing down nearly 4 percent. |
| After a three-day rout that erased nearly $3 trillion in value from stocks globally, markets on Tuesday showed signs that selling pressures were easing. | After a three-day rout that erased nearly $3 trillion in value from stocks globally, markets on Tuesday showed signs that selling pressures were easing. |
| Volatility continued to dominate early trading in Asia, but many regional markets swung from losses to gains for the first time in days. | |
| Across Asia, the free fall of the past few days appeared to have ended — except in China, where Shanghai stocks opened 6.4 percent lower after Monday’s 8.5 percent plunge. | Across Asia, the free fall of the past few days appeared to have ended — except in China, where Shanghai stocks opened 6.4 percent lower after Monday’s 8.5 percent plunge. |
| Stocks in Japan closed down 4 percent after seesawing dramatically between losses and gains. The Hang Seng index in Hong Kong was also down about 1.5 percent. Shares elsewhere staged modest rallies. Australia’s benchmark index closed up 2.7 percent. | |
| Markets around the world have been jolted in recent days by concerns about China’s ability to be a powerful engine of global economic growth. That has added to worries about the potential impact of higher interest rates in the United States. | Markets around the world have been jolted in recent days by concerns about China’s ability to be a powerful engine of global economic growth. That has added to worries about the potential impact of higher interest rates in the United States. |
| The sell-off had weighed heavily on commodities and regional currencies, pushing the prices of many to their lowest levels since the financial crisis. | The sell-off had weighed heavily on commodities and regional currencies, pushing the prices of many to their lowest levels since the financial crisis. |
| But signs of a rebound emerged in early Asian trading on Tuesday. Many Asian currencies rose against the dollar for the first time in days. The Japanese yen, a regional haven currency, slipped against the dollar after a four-day rally. | But signs of a rebound emerged in early Asian trading on Tuesday. Many Asian currencies rose against the dollar for the first time in days. The Japanese yen, a regional haven currency, slipped against the dollar after a four-day rally. |
| Futures contracts for American and European benchmark oil prices rose sharply. Industrial metals also rose. Shanghai copper futures rose more than 1 percent in morning trading but then slumped. | Futures contracts for American and European benchmark oil prices rose sharply. Industrial metals also rose. Shanghai copper futures rose more than 1 percent in morning trading but then slumped. |
| However, big questions about the health of China’s economy, and the capacity of the country’s leaders to manage its slowdown, remain unanswered. | However, big questions about the health of China’s economy, and the capacity of the country’s leaders to manage its slowdown, remain unanswered. |
| The tumult has had many analysts grasping for explanations, given the lack of any significant new data that would explain the big market moves. | The tumult has had many analysts grasping for explanations, given the lack of any significant new data that would explain the big market moves. |
| On Monday, the steepest losses in the New York markets ended within minutes after opening, with share prices spending the rest of the day sharply rising and reversing course multiple times. When the day’s roller-coaster ride ended, the benchmark for stocks, the Standard & Poor’s 500-stock index, was down 3.9 percent. That left the index off 11 percent from its May high, in what in market parlance is called a “correction,” its first since 2011. | On Monday, the steepest losses in the New York markets ended within minutes after opening, with share prices spending the rest of the day sharply rising and reversing course multiple times. When the day’s roller-coaster ride ended, the benchmark for stocks, the Standard & Poor’s 500-stock index, was down 3.9 percent. That left the index off 11 percent from its May high, in what in market parlance is called a “correction,” its first since 2011. |
| Beyond the questions about what exactly caused Monday’s moves, the recent market turmoil has now led many investors to turn their focus to the government officials who have become the most important players in the market since the financial crisis. | Beyond the questions about what exactly caused Monday’s moves, the recent market turmoil has now led many investors to turn their focus to the government officials who have become the most important players in the market since the financial crisis. |
| In particular, there is a growing debate among market participants about whether the Federal Reserve will still follow through with plans to push interest rates higher, an action that was expected to begin in September. The market turmoil has led some, including Lawrence H. Summers, a former chief economic adviser to President Obama, to call for the central bank to reconsider those plans. | In particular, there is a growing debate among market participants about whether the Federal Reserve will still follow through with plans to push interest rates higher, an action that was expected to begin in September. The market turmoil has led some, including Lawrence H. Summers, a former chief economic adviser to President Obama, to call for the central bank to reconsider those plans. |
| Investors have also been looking to Beijing. Over the weekend, there were expectations that the Chinese government would take more aggressive steps to stem the recent declines in the Chinese stock market and the renminbi, the country’s currency. | Investors have also been looking to Beijing. Over the weekend, there were expectations that the Chinese government would take more aggressive steps to stem the recent declines in the Chinese stock market and the renminbi, the country’s currency. |
| Previous moves, though, did little to beat back concern about a weakening Chinese economy, and Chinese officials declined to do anything significant on Monday. | Previous moves, though, did little to beat back concern about a weakening Chinese economy, and Chinese officials declined to do anything significant on Monday. |
| The debates in both China and the United States have often turned to more worrying questions about whether the levers that central bankers use to influence the markets are losing their power after years of extensive intervention. | The debates in both China and the United States have often turned to more worrying questions about whether the levers that central bankers use to influence the markets are losing their power after years of extensive intervention. |
| With all the hand-wringing, however, many investment advisers have been urging clients to ignore the recent swings. | With all the hand-wringing, however, many investment advisers have been urging clients to ignore the recent swings. |
| And although a number of American companies stand to be hurt by any weakness in China, recent data has suggested that the economy in the United States is continuing to gain strength. | And although a number of American companies stand to be hurt by any weakness in China, recent data has suggested that the economy in the United States is continuing to gain strength. |
| Even apart from the problems in China, many analysts have said that high-flying American stocks were due for a pause after the steady upward climb that has characterized the American stock market over the last four years. | Even apart from the problems in China, many analysts have said that high-flying American stocks were due for a pause after the steady upward climb that has characterized the American stock market over the last four years. |
| Still, the violent swings in stocks have left many investors unnerved. | Still, the violent swings in stocks have left many investors unnerved. |
| Many investors are now hoping that the central bank, the People’s Bank of China, will cut the ratio of deposits that banks are required to keep on reserve in a bid to encourage lending and spur economic growth. | Many investors are now hoping that the central bank, the People’s Bank of China, will cut the ratio of deposits that banks are required to keep on reserve in a bid to encourage lending and spur economic growth. |
| In the meantime, there are big questions about whether China’s stock market plunge will make the Chinese economy, the world’s second-largest after that of the United States, even weaker. | In the meantime, there are big questions about whether China’s stock market plunge will make the Chinese economy, the world’s second-largest after that of the United States, even weaker. |
| Xu Sitao, the chief China economist in the Beijing office of Deloitte, said in a speech in Hong Kong that the effect on the economy could be muted because equities represent only 7 percent of the overall wealth of urban Chinese households, which continue to rely heavily on real estate in their holdings. | Xu Sitao, the chief China economist in the Beijing office of Deloitte, said in a speech in Hong Kong that the effect on the economy could be muted because equities represent only 7 percent of the overall wealth of urban Chinese households, which continue to rely heavily on real estate in their holdings. |
| In the United States, too, economists were hopeful that the activity in the markets would not spread to the broader economy. | In the United States, too, economists were hopeful that the activity in the markets would not spread to the broader economy. |
| The slump in China’s stock market has come amid conflicting signals from Beijing. | The slump in China’s stock market has come amid conflicting signals from Beijing. |
| After a tremendous rally fizzled in June, the Chinese government resorted to exceptional measures to try to prop up share prices, including ordering state agencies to buy shares and banning large shareholders from selling. Those measures now appear to have failed. | After a tremendous rally fizzled in June, the Chinese government resorted to exceptional measures to try to prop up share prices, including ordering state agencies to buy shares and banning large shareholders from selling. Those measures now appear to have failed. |
| By late morning on Tuesday, China’s were the only major markets in Asia still in negative territory. The Shanghai index was trading at its lowest level so far this year, down about 4 percent from Monday, while Shenzhen was 5 percent lower. | By late morning on Tuesday, China’s were the only major markets in Asia still in negative territory. The Shanghai index was trading at its lowest level so far this year, down about 4 percent from Monday, while Shenzhen was 5 percent lower. |
| In an apparent reflection of policy-making dissonance in Beijing, China’s state-controlled financial news outlets gave voice to a debate about future state intervention in the markets. | In an apparent reflection of policy-making dissonance in Beijing, China’s state-controlled financial news outlets gave voice to a debate about future state intervention in the markets. |
| “The slump in the stock markets is destroying what remains of investor confidence, and this problem is profoundly serious,” said a front-page commentary on Tuesday in the official Securities Daily, defending interventionist policies. | “The slump in the stock markets is destroying what remains of investor confidence, and this problem is profoundly serious,” said a front-page commentary on Tuesday in the official Securities Daily, defending interventionist policies. |
| However, a rival commentary in another official news outlet, The Economic Information Daily, said that it was time for the government to step back from shoring up the stock market. | However, a rival commentary in another official news outlet, The Economic Information Daily, said that it was time for the government to step back from shoring up the stock market. |
| “The domestic policy focus should be on steadily retreating from stock market bailout policies,” the front-page commentary said. “Government bailouts are meant to avert financial risks, not to prop up stock prices.” | “The domestic policy focus should be on steadily retreating from stock market bailout policies,” the front-page commentary said. “Government bailouts are meant to avert financial risks, not to prop up stock prices.” |