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Dow Jones rallies, then stutters after China sell-off - live Dow Jones rallies, then stutters after China sell-off - live
(35 minutes later)
6.16pm BST18:16
Barrick Gold is at levels not seen since 1989 pic.twitter.com/Vs5kxm7bwa
As the market rallies, companies associated with commodities are on the way down: Barrick Gold, a mining concern, had an incredible peak during the financial crisis and recently now lost all those gains and more.
Updated at 6.27pm BST
5.54pm BST17:545.54pm BST17:54
Here’s an interesting one from Doug Short: a graph of the S&P 500 starting Oct. 9, 2007, at the beginning of the financial crisis and continuing through the present day. The index is down 9.29% for the year thus far, but this most recent dip is the second-deepest of the recovery so far.Here’s an interesting one from Doug Short: a graph of the S&P 500 starting Oct. 9, 2007, at the beginning of the financial crisis and continuing through the present day. The index is down 9.29% for the year thus far, but this most recent dip is the second-deepest of the recovery so far.
5.32pm BST17:325.32pm BST17:32
5.30pm BST17:305.30pm BST17:30
If you’re just tuning in, here’s our latest news story on today’s developments:If you’re just tuning in, here’s our latest news story on today’s developments:
Related: Global market turmoil makes planned interest rate rise 'less compelling'Related: Global market turmoil makes planned interest rate rise 'less compelling'
5.22pm BST17:225.22pm BST17:22
Sam Thielman in New York taking over the liveblog from Graeme - it’s a grim day in New York as news of a grisly murder in Virginia dominates headlines coverage. The Dow took off early this morning but has zigged and zagged downward toward its opening price.Sam Thielman in New York taking over the liveblog from Graeme - it’s a grim day in New York as news of a grisly murder in Virginia dominates headlines coverage. The Dow took off early this morning but has zigged and zagged downward toward its opening price.
There’s another scuttled deal after yesterday’s no-go notice for the Pepco-Exelon merger, but this one is good for at least one party: Monsanto has said it’s not going to continue to pursue the acquisition of Swiss company Syngenta and is trading up on the news.There’s another scuttled deal after yesterday’s no-go notice for the Pepco-Exelon merger, but this one is good for at least one party: Monsanto has said it’s not going to continue to pursue the acquisition of Swiss company Syngenta and is trading up on the news.
Meanwhile, oil has dropped below $40 a barrel on a combination of worries about China and near-record Opec production; Pavel Molchanov of Raymond James tells Yahoo News that the reasons aren’t “fundamental.”Meanwhile, oil has dropped below $40 a barrel on a combination of worries about China and near-record Opec production; Pavel Molchanov of Raymond James tells Yahoo News that the reasons aren’t “fundamental.”
5.17pm BST17:175.17pm BST17:17
What a dramatic week it’s been already:What a dramatic week it’s been already:
FTSE 100 chart of the week so far (h/t @DuncanWeldon for the Wednesday label). pic.twitter.com/uDOnO5MBBeFTSE 100 chart of the week so far (h/t @DuncanWeldon for the Wednesday label). pic.twitter.com/uDOnO5MBBe
Could we get Turnaround Thursday tomorrow? Or Troubling Thursday, perhaps....Could we get Turnaround Thursday tomorrow? Or Troubling Thursday, perhaps....
5.04pm BST17:045.04pm BST17:04
£26bn was knocked off the value of the FTSE 100 companies today, calculates Sky News.£26bn was knocked off the value of the FTSE 100 companies today, calculates Sky News.
Stock Market Turmoil: £26bn Wiped Off FTSE 100 http://t.co/ElqLa4YpJs pic.twitter.com/5FMdWJEQdGStock Market Turmoil: £26bn Wiped Off FTSE 100 http://t.co/ElqLa4YpJs pic.twitter.com/5FMdWJEQdG
5.01pm BST17:015.01pm BST17:01
Today’s sell-off pushes the FTSE 100 deeper into correction territory. It’s currently 15% off its record high.Today’s sell-off pushes the FTSE 100 deeper into correction territory. It’s currently 15% off its record high.
4.56pm BST16:564.56pm BST16:56
FTSE 100 falls 102 pointsFTSE 100 falls 102 points
European stock markets have just posted chunky falls, in a late selloff that suggests investors on this side of the Atlantic remain anxious.European stock markets have just posted chunky falls, in a late selloff that suggests investors on this side of the Atlantic remain anxious.
The FTSE 100 index of blue-chip shares fell by 102 points to close at 5979, back below the 6,000 point mark. It has now fallen for 11 of the last 12 days (yesterday it jumped by 188 points)The FTSE 100 index of blue-chip shares fell by 102 points to close at 5979, back below the 6,000 point mark. It has now fallen for 11 of the last 12 days (yesterday it jumped by 188 points)
Silver producer Fresnillo led the selloff, down 7%:Silver producer Fresnillo led the selloff, down 7%:
Germany’s DAX and Spain’s IBEX both lost 1.3%, and the French CAC dropped 1.4%.Germany’s DAX and Spain’s IBEX both lost 1.3%, and the French CAC dropped 1.4%.
The markets had briefly turned positive earlier today, after the People’s Bank of China offered more cheap loans to the financial sector. The feel-good factor didn’t last long, though.The markets had briefly turned positive earlier today, after the People’s Bank of China offered more cheap loans to the financial sector. The feel-good factor didn’t last long, though.
Jasper Lawler of CMC Markets explains why:Jasper Lawler of CMC Markets explains why:
The source of the rebound on Wednesday was a move by the People’s Bank of China to inject 140bn yuan ($21.8bn) into the economy, a day after cutting interest rates and bank reserve ratios. It’s clearly a positive that Chinese authorities have woken up to the problem at hand, it’s just a bit of a worry it took them this long.The source of the rebound on Wednesday was a move by the People’s Bank of China to inject 140bn yuan ($21.8bn) into the economy, a day after cutting interest rates and bank reserve ratios. It’s clearly a positive that Chinese authorities have woken up to the problem at hand, it’s just a bit of a worry it took them this long.
Rather than getting ahead of the game with a well thought out plan for stabilising the economy, the People’s Bank of China appears to be reluctantly easing policy any time there’s a drop in share prices. The net effect is that markets clamour for more stimulus while at the same time losing faith it will actually work.Rather than getting ahead of the game with a well thought out plan for stabilising the economy, the People’s Bank of China appears to be reluctantly easing policy any time there’s a drop in share prices. The net effect is that markets clamour for more stimulus while at the same time losing faith it will actually work.
Updated at 5.26pm BSTUpdated at 5.26pm BST
4.40pm BST16:404.40pm BST16:40
City pros talk about ‘Dr Copper’, because the metal’s price is seen as a good indicator of the health of the global economy.City pros talk about ‘Dr Copper’, because the metal’s price is seen as a good indicator of the health of the global economy.
This chart, from Royal Bank of Scotland, suggests the patient is ailing:This chart, from Royal Bank of Scotland, suggests the patient is ailing:
Add to the mix the fall in that old favourite global growth indicator. The copper price @JeremyWarnerUK @DuncanWeldon pic.twitter.com/8G9jCI8ymRAdd to the mix the fall in that old favourite global growth indicator. The copper price @JeremyWarnerUK @DuncanWeldon pic.twitter.com/8G9jCI8ymR
4.27pm BST16:274.27pm BST16:27
Our rivals at the Financial Times in London have spotted a rainbow over the City.Our rivals at the Financial Times in London have spotted a rainbow over the City.
There aren’t many pots of gold on offer in the equity market tonight, though, with the FTSE down around 1.2% in late trading.There aren’t many pots of gold on offer in the equity market tonight, though, with the FTSE down around 1.2% in late trading.
Looks like treasure at the end of the rainbow - somewhere near the @bankofengland ... pic.twitter.com/dMA1BNDfNBLooks like treasure at the end of the rainbow - somewhere near the @bankofengland ... pic.twitter.com/dMA1BNDfNB
3.56pm BST15:563.56pm BST15:56
Rupert NeateRupert Neate
William Dudley’s comments on a September rate hike are significant, as he had previously been one of the FOMC members pushing for a rate raise.William Dudley’s comments on a September rate hike are significant, as he had previously been one of the FOMC members pushing for a rate raise.
Here’s the key quote from today’s press conference:Here’s the key quote from today’s press conference:
“From my perspective, at this moment, the decision to begin the normalisation process at the September FOMC process seems less compelling to me than it was a few weeks ago.”“From my perspective, at this moment, the decision to begin the normalisation process at the September FOMC process seems less compelling to me than it was a few weeks ago.”
Updated at 4.00pm BSTUpdated at 4.00pm BST
3.53pm BST15:533.53pm BST15:53
The former CEO of bond giant Pimco, Mohamed El-Erian, got the message:The former CEO of bond giant Pimco, Mohamed El-Erian, got the message:
FYI,Bill #Dudley confirms that a Sept @FederalReserve hike is less compelling and, therefore, less likely. #economy #markets @NYFed_data #fxFYI,Bill #Dudley confirms that a Sept @FederalReserve hike is less compelling and, therefore, less likely. #economy #markets @NYFed_data #fx
3.52pm BST15:523.52pm BST15:52
The current stock market turmoil did not start in the US, Dudley adds, but doesn’t go into much detail:The current stock market turmoil did not start in the US, Dudley adds, but doesn’t go into much detail:
3.41pm BST15:413.41pm BST15:41
Fed's Dudley pours cold water on September rate hikeFed's Dudley pours cold water on September rate hike
Bingo! Federal Reserve policymaker William Dudley has just declared that a September interest rate hike is less likely.Bingo! Federal Reserve policymaker William Dudley has just declared that a September interest rate hike is less likely.
Dudley told his audience in New York said that recent data has been “pretty positive”, but international developments (hello, China) have raised the downside risks.Dudley told his audience in New York said that recent data has been “pretty positive”, but international developments (hello, China) have raised the downside risks.
As such, as September rate hike is “less compelling”, says Dudley.As such, as September rate hike is “less compelling”, says Dudley.
He added that it’s important not to overreact to recent moves, though.He added that it’s important not to overreact to recent moves, though.
BREAKING: Fed's Dudley says September rate hike looks less compelling » http://t.co/Ta0s9pbWUr pic.twitter.com/GM6FQNiIaeBREAKING: Fed's Dudley says September rate hike looks less compelling » http://t.co/Ta0s9pbWUr pic.twitter.com/GM6FQNiIae
3.35pm BST15:353.35pm BST15:35
After an hour of trading, the Wall Street rally has lost a little of its fizz.After an hour of trading, the Wall Street rally has lost a little of its fizz.
The Dow Jones is bobbing around the 15,950 mark, a gain of around 300 points. That’s not a particularly strong position, given the recent sharp losses:The Dow Jones is bobbing around the 15,950 mark, a gain of around 300 points. That’s not a particularly strong position, given the recent sharp losses:
3.14pm BST15:143.14pm BST15:14
William Dudley, president of Federal Reserve Bank of New York, is giving a speech now, but he’s avoiding saying anything too controversial.William Dudley, president of Federal Reserve Bank of New York, is giving a speech now, but he’s avoiding saying anything too controversial.
Traders had been looking for guidance on possible rate hikes, or the China crisis. But instead, Dudley’s prepared speech sticks to New York issues.Traders had been looking for guidance on possible rate hikes, or the China crisis. But instead, Dudley’s prepared speech sticks to New York issues.
Here's his speech pic.twitter.com/iqhlpPyzQkHere's his speech pic.twitter.com/iqhlpPyzQk
However, there’s a Q&A coming up, so Dudley yet cough up an interesting quote....However, there’s a Q&A coming up, so Dudley yet cough up an interesting quote....
2.56pm BST14:562.56pm BST14:56
Having watched yesterday’s volatility, our US business editor Dominic Rushe fears that today’s rally may not last until the closing bell.Having watched yesterday’s volatility, our US business editor Dominic Rushe fears that today’s rally may not last until the closing bell.
Here’s his early take.Here’s his early take.
Dow Jones surges over 400 points (come back for Wall St down story in the PM) #dejavu http://t.co/1iZyaZ6yGh pic.twitter.com/96jWGZVEleDow Jones surges over 400 points (come back for Wall St down story in the PM) #dejavu http://t.co/1iZyaZ6yGh pic.twitter.com/96jWGZVEle
2.53pm BST14:532.53pm BST14:53
2.51pm BST14:512.51pm BST14:51
Every share on the Dow is up in early trading.Every share on the Dow is up in early trading.
Pharmaceutical company Merck is fastest out of the blocks, gaining 4.4% [having been the biggest faller yesterday].Pharmaceutical company Merck is fastest out of the blocks, gaining 4.4% [having been the biggest faller yesterday].
Tech giant Apple is close behind -- it’s obviously exposed to weakness in the Chinese economy. Nike is enjoying an early bounce too.Tech giant Apple is close behind -- it’s obviously exposed to weakness in the Chinese economy. Nike is enjoying an early bounce too.
2.39pm BST14:392.39pm BST14:39
Looks like another day of @cnbc and too much chocolate. pic.twitter.com/U7N9uwIxVsLooks like another day of @cnbc and too much chocolate. pic.twitter.com/U7N9uwIxVs
2.35pm BST14:352.35pm BST14:35
Dow Jones jumps by 430 points in early tradingDow Jones jumps by 430 points in early trading
The rally is on! For the second day day running, Wall Street has surged at the start of trading.The rally is on! For the second day day running, Wall Street has surged at the start of trading.
The Dow Jones is up by 430 points, or 2.7%, in an early burst of optimism.The Dow Jones is up by 430 points, or 2.7%, in an early burst of optimism.
The S&P 500, which covers a broader, wider range of US companies, is up 2.5%.The S&P 500, which covers a broader, wider range of US companies, is up 2.5%.
But can the rally hold? It couldn’t yesterday.......But can the rally hold? It couldn’t yesterday.......
Updated at 2.44pm BSTUpdated at 2.44pm BST
2.32pm BST14:322.32pm BST14:32
US stocks are rising, pushing the Dow Jones industrial average up by 350 points, or 2.3%, in the first two minutes of trading.US stocks are rising, pushing the Dow Jones industrial average up by 350 points, or 2.3%, in the first two minutes of trading.
It’s still climbing too.....It’s still climbing too.....
2.30pm BST14:302.30pm BST14:30
The Wall Street bell is being rung, and trading gets underway in New York.....The Wall Street bell is being rung, and trading gets underway in New York.....
2.12pm BST14:122.12pm BST14:12
New York authorities have invoked ‘Rule 48’, a regulation designed to help the market open smoothly when volatility is high.New York authorities have invoked ‘Rule 48’, a regulation designed to help the market open smoothly when volatility is high.
2.07pm BST14:072.07pm BST14:07
Even if Wall Street does rally this morning, traders will surely be anxious after yesterday’s late selloff.Even if Wall Street does rally this morning, traders will surely be anxious after yesterday’s late selloff.
That saw the Dow leap by 3%, only to finish down 1.3% by the closing bell.That saw the Dow leap by 3%, only to finish down 1.3% by the closing bell.
Peter Cardillo, chief market economist at Rockwell Global Capital, tells Reuters:Peter Cardillo, chief market economist at Rockwell Global Capital, tells Reuters:
“These type of swings are typical when the market behaves in a way that is a real test of nerves and there is a lot ofongoing uncertainty.”“These type of swings are typical when the market behaves in a way that is a real test of nerves and there is a lot ofongoing uncertainty.”
1.38pm BST13:381.38pm BST13:38
Hold onto your hats, we’re getting some decent economic news out of America.Hold onto your hats, we’re getting some decent economic news out of America.
Orders for durable goods (long-lasting manufactured goods) spiked by 2% in July, surprising economists who had expected a 0.4% decline.Orders for durable goods (long-lasting manufactured goods) spiked by 2% in July, surprising economists who had expected a 0.4% decline.
HUGE beat on the data.HUGE beat on the data.
And that could mean the Dow Jones industrial average posts a stronger rally in an hour’s time.And that could mean the Dow Jones industrial average posts a stronger rally in an hour’s time.
1.22pm BST13:221.22pm BST13:22
New York traders are preparing for a surge of buying when the market opens, in an hour’s time.New York traders are preparing for a surge of buying when the market opens, in an hour’s time.
It's gonna be huge: Dow futures up 300 pointsIt's gonna be huge: Dow futures up 300 points
1.11pm BST13:111.11pm BST13:11
The prospect of more central bank easing has had a predictably uplifting effect on European markets.The prospect of more central bank easing has had a predictably uplifting effect on European markets.
The euro has fallen by 1% since ECB chief economist Peter Praet hinted that it could take fresh action to fight deflation. It has hit $1.1404, down from $1.151 last night.The euro has fallen by 1% since ECB chief economist Peter Praet hinted that it could take fresh action to fight deflation. It has hit $1.1404, down from $1.151 last night.
And shares are bouncing back from their lowest points. The FTSE 100 is now down 24 points, or 0.4%, after suffering a triple-digit slump this morning.And shares are bouncing back from their lowest points. The FTSE 100 is now down 24 points, or 0.4%, after suffering a triple-digit slump this morning.
Here’s the situation across Europe, as traders grab a quick lunch (City workers should take an umbrella to the sandwich shop)Here’s the situation across Europe, as traders grab a quick lunch (City workers should take an umbrella to the sandwich shop)
Updated at 1.42pm BSTUpdated at 1.42pm BST
12.51pm BST12:5112.51pm BST12:51
This is rather neat - a timeline showing how the Shanghai composite index soared then tanked this year, and the actions that Beijing policymakers took along the way:This is rather neat - a timeline showing how the Shanghai composite index soared then tanked this year, and the actions that Beijing policymakers took along the way:
China's stunning stock market moves in one huge, annotated chart. http://t.co/mxYFBPcBF6 via @TomOrlik pic.twitter.com/PgqXQDrnp7China's stunning stock market moves in one huge, annotated chart. http://t.co/mxYFBPcBF6 via @TomOrlik pic.twitter.com/PgqXQDrnp7
12.11pm BST12:1112.11pm BST12:11
ECB hints at more stimulusECB hints at more stimulus
The European Central Bank’s chief economist just dropped a loud hint that it could take fresh action to stimulate Europe’s economy.The European Central Bank’s chief economist just dropped a loud hint that it could take fresh action to stimulate Europe’s economy.
Falling commodity prices, and signs of economic weakness, mean there is a greater risk that Europe misses its inflation targets, Peter Praet told journalists in Mannheim, Germany. If so, the ECB would act, he insisted.Falling commodity prices, and signs of economic weakness, mean there is a greater risk that Europe misses its inflation targets, Peter Praet told journalists in Mannheim, Germany. If so, the ECB would act, he insisted.
Here’s Praet’s comments, via Reuters:Here’s Praet’s comments, via Reuters:
“Developments in the world economy and commodity markets have increased the downside risk in achieving the sustainable inflation path towards 2 percent; the risk has increased.“Developments in the world economy and commodity markets have increased the downside risk in achieving the sustainable inflation path towards 2 percent; the risk has increased.
“The governing council will closely monitor all incoming information,” he said. “There should be no ambiguity on the willingness and ability of the governing council to act if needed.”“The governing council will closely monitor all incoming information,” he said. “There should be no ambiguity on the willingness and ability of the governing council to act if needed.”
This chart shows how market’s expectations for eurozone inflation have fallen; that will concern the ECB.This chart shows how market’s expectations for eurozone inflation have fallen; that will concern the ECB.
#ECB's Praet: Clear that downside risks to inflation goal have increased. Inflation expectations (5y5y) have dropped. pic.twitter.com/rKOAKo77kY#ECB's Praet: Clear that downside risks to inflation goal have increased. Inflation expectations (5y5y) have dropped. pic.twitter.com/rKOAKo77kY
Could that mean more quantitative easing, on top of the €60bn per month already being pumped in? Possibly.Could that mean more quantitative easing, on top of the €60bn per month already being pumped in? Possibly.
A settled definition of ECB #QE2 would be helpful. What combination of: 1) more monthly € 2) beyond Sept 2016 3) extended range of assetsA settled definition of ECB #QE2 would be helpful. What combination of: 1) more monthly € 2) beyond Sept 2016 3) extended range of assets
11.38am BST11:3811.38am BST11:38
Summary: Markets suffer Wednesday wobbleSummary: Markets suffer Wednesday wobble
Time for a recap.Time for a recap.
World stock markets are enduring another volatile day, with fresh losses in China and across Europe.World stock markets are enduring another volatile day, with fresh losses in China and across Europe.
The FTSE 100 index of leading blue-chip shares has shed 82 points, or 1.3%, so far today, to 6000 points as rain lashes the windows of trading floors in the City.The FTSE 100 index of leading blue-chip shares has shed 82 points, or 1.3%, so far today, to 6000 points as rain lashes the windows of trading floors in the City.
Other European stocks are also weakening, having posted their biggest jump in four years yesterday. Germany’s DAX is down 1.5%.Other European stocks are also weakening, having posted their biggest jump in four years yesterday. Germany’s DAX is down 1.5%.
The Shanghai composite hit its lowest level since last December, after an early rally fizzled out. Investors in China remain jittery, despite Tuesday’s interest rate cute.The Shanghai composite hit its lowest level since last December, after an early rally fizzled out. Investors in China remain jittery, despite Tuesday’s interest rate cute.
The People’s Bank of China has taken fresh action today, by pumping another 140bn yuan into the interbank money market system.The People’s Bank of China has taken fresh action today, by pumping another 140bn yuan into the interbank money market system.
That has provided some comfort for investors, says Connor Campbell of SpreadEX:That has provided some comfort for investors, says Connor Campbell of SpreadEX:
Whilst it may be a case of the central bank using a pack of plasters when surgery is needed, investors appeared to react more positively to the news than they have done to other inventions by the PBOC in the past fortnight.Whilst it may be a case of the central bank using a pack of plasters when surgery is needed, investors appeared to react more positively to the news than they have done to other inventions by the PBOC in the past fortnight.
It means the FTSE has tentatively climbed past the 6000 mark, with the DAX sporadically re-crossing the 10000 level.It means the FTSE has tentatively climbed past the 6000 mark, with the DAX sporadically re-crossing the 10000 level.
Wall Street is expected to bounce back, after a late plunge last night:Wall Street is expected to bounce back, after a late plunge last night:
Dow Jones looks set top open 264 points higher to 15934Dow Jones looks set top open 264 points higher to 15934
After Black Monday, and Turnaround Tuesday, Wednesday is proving a little less dramatic.After Black Monday, and Turnaround Tuesday, Wednesday is proving a little less dramatic.
Japan’s stock market even rallied, ending up over 3%.Japan’s stock market even rallied, ending up over 3%.
Advertising magnate Sir Martin Sorrell has thrown his weight behind China, saying he remains a ‘raging bull’ on its long-term prospects.Advertising magnate Sir Martin Sorrell has thrown his weight behind China, saying he remains a ‘raging bull’ on its long-term prospects.
And Chinese authorities have begun investigating a journalist, having arrested two officials.And Chinese authorities have begun investigating a journalist, having arrested two officials.
You already know it's risky to be political journalists in China - Now financial reporter is risky job too amid #ChinaMeltdown stock crisis!You already know it's risky to be political journalists in China - Now financial reporter is risky job too amid #ChinaMeltdown stock crisis!
It shows that the “search for scapegoats” is underway, says Bloomberg:It shows that the “search for scapegoats” is underway, says Bloomberg:
Interesting policy discussions in China about stock market plunge. China Authorities Escalate Blame Game http://t.co/4UHCwxOLOFInteresting policy discussions in China about stock market plunge. China Authorities Escalate Blame Game http://t.co/4UHCwxOLOF
Updated at 12.29pm BSTUpdated at 12.29pm BST
11.22am BST11:2211.22am BST11:22
10.58am BST10:5810.58am BST10:58
Sir Martin Sorrell isn’t the only one feeling bullish about China, despite the current market rout.Sir Martin Sorrell isn’t the only one feeling bullish about China, despite the current market rout.
William Fong of Baring Asset Management agrees that the country’s long-term growth prospects are still rosy:William Fong of Baring Asset Management agrees that the country’s long-term growth prospects are still rosy:
We like companies aligned with government policy as the process of urbanisation and improving China’s environment continues. We also like beneficiaries of rising consumption and technological outfitting as companies move along the value chain, as well as “New China” brands, able to compete with the biggest names.We like companies aligned with government policy as the process of urbanisation and improving China’s environment continues. We also like beneficiaries of rising consumption and technological outfitting as companies move along the value chain, as well as “New China” brands, able to compete with the biggest names.
Everyone knows about Tencent and Lenovo, but we think the future is bright for companies such as Geely Automobile, a Chinese car maker able to sell in the EU, and Provence-style body and skincare brand L’Occitane, which has international as well as domestic exposure.Everyone knows about Tencent and Lenovo, but we think the future is bright for companies such as Geely Automobile, a Chinese car maker able to sell in the EU, and Provence-style body and skincare brand L’Occitane, which has international as well as domestic exposure.
10.37am BST10:3710.37am BST10:37
Photographers were lining up to capture today’s 1.5% fall on the Hong Kong stock market:Photographers were lining up to capture today’s 1.5% fall on the Hong Kong stock market:
10.23am BST10:2310.23am BST10:23
Despite the losses in China, and Europe, the US stock market is tipped to jump by more than 1% when trading begins in four hours time.Despite the losses in China, and Europe, the US stock market is tipped to jump by more than 1% when trading begins in four hours time.
But don’t put your last fiver on it, given the way the Dow Jones flopped in late trading last night.But don’t put your last fiver on it, given the way the Dow Jones flopped in late trading last night.
Dow futures up about 200. So we're giving this another go?Dow futures up about 200. So we're giving this another go?
10.20am BST10:2010.20am BST10:20
Britain would be less badly hit than other advanced economies if China’s economy weakens sharply.Britain would be less badly hit than other advanced economies if China’s economy weakens sharply.
So argues Oxford Economics, anyway. Here’s their logic:So argues Oxford Economics, anyway. Here’s their logic:
As a key player in the global economy and an increasingly important market for UK exports, a prolonged slowdown in the Chinese economy would hit the UK’s growth prospects.As a key player in the global economy and an increasingly important market for UK exports, a prolonged slowdown in the Chinese economy would hit the UK’s growth prospects.
But the risk of a Chinese ‘hard-landing’ could also deliver benefits for the domestic economy, via cheaper commodities and by staying the MPC’s hand in raising interest rates. Simulations using the Oxford Global Economic Model suggest that a structural hit to Chinese growth would be a net negative to the UK, but less so than for many other economies.But the risk of a Chinese ‘hard-landing’ could also deliver benefits for the domestic economy, via cheaper commodities and by staying the MPC’s hand in raising interest rates. Simulations using the Oxford Global Economic Model suggest that a structural hit to Chinese growth would be a net negative to the UK, but less so than for many other economies.
10.05am BST10:0510.05am BST10:05
9.56am BST09:569.56am BST09:56
China's central bank injects 140bn yuan into financial sectorChina's central bank injects 140bn yuan into financial sector
Significant developments: China’s central bank is injecting 140bn yuan into the interbank money market to avoid liquidity drying up.Significant developments: China’s central bank is injecting 140bn yuan into the interbank money market to avoid liquidity drying up.
The People’s Bank of China has announced plans for new ‘short-term liquidity’ operations; effectively cheap loans to lenders, who have suffered from the flow of capital out of the country.The People’s Bank of China has announced plans for new ‘short-term liquidity’ operations; effectively cheap loans to lenders, who have suffered from the flow of capital out of the country.
#Chinese Central Bank will inject 140Bn yuan via short term liquidity operations, SLOS, today-- to hv interest rate of 2.3% - via @Reuters#Chinese Central Bank will inject 140Bn yuan via short term liquidity operations, SLOS, today-- to hv interest rate of 2.3% - via @Reuters
The moves shows that the PBoC remains concerned that China’s banking sector could run short of funds.The moves shows that the PBoC remains concerned that China’s banking sector could run short of funds.
Capital has been leaving China since Beijing devalued the yuan earlier this month. And that shortage is be exacerbated when the PBoC tries to prop up the currency by buying yuan (as this leaves less circulating in the real economy).Capital has been leaving China since Beijing devalued the yuan earlier this month. And that shortage is be exacerbated when the PBoC tries to prop up the currency by buying yuan (as this leaves less circulating in the real economy).
Last week the PBoC launched a 120 billion yuan liquidity injection, which was the biggest in 19 months.Last week the PBoC launched a 120 billion yuan liquidity injection, which was the biggest in 19 months.
Today’s move came after the Shanghai stock market fell again, with investors failing to take solace from yesterday’s rate cuts.Today’s move came after the Shanghai stock market fell again, with investors failing to take solace from yesterday’s rate cuts.
Updated at 10.25am BSTUpdated at 10.25am BST
9.37am BST09:379.37am BST09:37
Today’s losses on the Shanghai markets have rippled across to Hong Kong, where the Hang Seng index closed down 1.5% a few minutes ago.Today’s losses on the Shanghai markets have rippled across to Hong Kong, where the Hang Seng index closed down 1.5% a few minutes ago.
9.23am BST09:239.23am BST09:23
This Bloomberg chart show how the Chinese stock market ran out of juice today, after attempting an afternoon rally:This Bloomberg chart show how the Chinese stock market ran out of juice today, after attempting an afternoon rally:
9.12am BST09:129.12am BST09:12
China has muscled the Greek debt crisis out of the way, to become the biggest issue causing investors sleepless nights:China has muscled the Greek debt crisis out of the way, to become the biggest issue causing investors sleepless nights:
You could say investors are concerned about China... pic.twitter.com/NuH7LAwBvBYou could say investors are concerned about China... pic.twitter.com/NuH7LAwBvB
9.09am BST09:099.09am BST09:09
The boss of luggage maker Samsonite has warned that sales growth to Chinese customers will halve this year, in a sign that the economy is weakening.The boss of luggage maker Samsonite has warned that sales growth to Chinese customers will halve this year, in a sign that the economy is weakening.
Reuters has the details:Reuters has the details:
China sales are expected to grow 15 to 16% on a local currency basis in the second half of the year and beyond,compared with nearly 30% growth in the first half, Chief executive Ramesh Tainwala said.China sales are expected to grow 15 to 16% on a local currency basis in the second half of the year and beyond,compared with nearly 30% growth in the first half, Chief executive Ramesh Tainwala said.
“China is an important part of our business but not the only part of our business,” Tainwala said, speaking to reporters after the company reported interim results“China is an important part of our business but not the only part of our business,” Tainwala said, speaking to reporters after the company reported interim results
“We have a very diversified business.”“We have a very diversified business.”
8.54am BST08:548.54am BST08:54
My colleague Mark Sweney has more details of Martin Sorrell’s views on China:My colleague Mark Sweney has more details of Martin Sorrell’s views on China:
Related: WPP's Sir Martin Sorrell bullish about China prospects despite sales slowdownRelated: WPP's Sir Martin Sorrell bullish about China prospects despite sales slowdown
8.45am BST08:458.45am BST08:45
Sir Martin Sorrell: Still a raging bull on ChinaSir Martin Sorrell: Still a raging bull on China
One of Britain’s top business chiefs, Sir Martin Sorrell, is still “a raging bull” about the Chinese economy.One of Britain’s top business chiefs, Sir Martin Sorrell, is still “a raging bull” about the Chinese economy.
Speaking on BBC Radio 4’s Today Programme, the boss of advertising giant WPP warned that if China’s economy slows sharply, the impact will be serious.Speaking on BBC Radio 4’s Today Programme, the boss of advertising giant WPP warned that if China’s economy slows sharply, the impact will be serious.
Be careful what you wish for...China has been the biggest driver of the world economy.Be careful what you wish for...China has been the biggest driver of the world economy.
Sorrell admitted that WPP has been braced for trouble since 2008, despite posting record performances each year since 2011.Sorrell admitted that WPP has been braced for trouble since 2008, despite posting record performances each year since 2011.
It’s been trench warfare, hand to hand combat, it’s not been easy.It’s been trench warfare, hand to hand combat, it’s not been easy.
But in the long term, Sorrell insists that China will remain a vital growth engine, along with the other BRICS economies, the smaller next 11 emerging markets, and digital economy.But in the long term, Sorrell insists that China will remain a vital growth engine, along with the other BRICS economies, the smaller next 11 emerging markets, and digital economy.
He also conceded that are concerns over the surge in Chinese debt levels. But, as he put it, “‘they ain’t done too bad” with a controlled economy since 1985, and “people in glass houses shouldn’t throw stones.”He also conceded that are concerns over the surge in Chinese debt levels. But, as he put it, “‘they ain’t done too bad” with a controlled economy since 1985, and “people in glass houses shouldn’t throw stones.”
Interesting interview on @BBCRadio4 today with Martin Sorrell: PBOC have stopped fighting the markets and taken more laid back approach.Interesting interview on @BBCRadio4 today with Martin Sorrell: PBOC have stopped fighting the markets and taken more laid back approach.
Updated at 9.04am BSTUpdated at 9.04am BST
8.32am BST08:328.32am BST08:32
After that late selloff in China, Europe’s stock markets have now all shed at least 1.7%.After that late selloff in China, Europe’s stock markets have now all shed at least 1.7%.
Nervy start to the European open as the #FTSE drops below 6000. TM pic.twitter.com/fXa7kT6tQmNervy start to the European open as the #FTSE drops below 6000. TM pic.twitter.com/fXa7kT6tQm
The markets are a very nervous place right now, as the late slide on the New York stock exchange last night made very clear.The markets are a very nervous place right now, as the late slide on the New York stock exchange last night made very clear.
Looks like yesterday's positive European session may have been the eye of the stormLooks like yesterday's positive European session may have been the eye of the storm
Tony Cross of Trustnet Direct adds:Tony Cross of Trustnet Direct adds:
It’s Wall Street’s slump ahead of last night’s close that appears to be setting the pace for the UK market and as is often the way after these excessive moves, this volatility appears likely to be with us for some time yet.It’s Wall Street’s slump ahead of last night’s close that appears to be setting the pace for the UK market and as is often the way after these excessive moves, this volatility appears likely to be with us for some time yet.
8.17am BST08:178.17am BST08:17
Chinese stock market hits eight-month lowChinese stock market hits eight-month low
China’s stock market has fallen again, for the fifth day running, as the market rout continuesChina’s stock market has fallen again, for the fifth day running, as the market rout continues
Despite its central bank’s efforts to calm the crisis by cutting interest rates on Tuesday, the Shanghai Composite index fell another 1.3% by the close of trading.Despite its central bank’s efforts to calm the crisis by cutting interest rates on Tuesday, the Shanghai Composite index fell another 1.3% by the close of trading.
Despite being up 4% earlier today, the stock market suffered a late selloff, showing that investors are still very worried about the situation.Despite being up 4% earlier today, the stock market suffered a late selloff, showing that investors are still very worried about the situation.
That drags the index down to 2927 points, it’s lowest since December 2014.That drags the index down to 2927 points, it’s lowest since December 2014.
*SHANGHAI COMPOSITE CLOSES 1.3% LOWER AS PBOC FAILS TO END ROUT*SHANGHAI COMPOSITE CLOSES 1.3% LOWER AS PBOC FAILS TO END ROUT
8.08am BST08:088.08am BST08:08
FTSE 100 tumbles by 90 pointsFTSE 100 tumbles by 90 points
European shares are losing ground at the start of the trading day, with fears over China still gripping the City.European shares are losing ground at the start of the trading day, with fears over China still gripping the City.
Britain’s FTSE 100 has quickly shed 90 points, a drop of 1.5%, taking it back below the 6000 point mark to 5991 and wiping out half of Tuesday’s recovery.Britain’s FTSE 100 has quickly shed 90 points, a drop of 1.5%, taking it back below the 6000 point mark to 5991 and wiping out half of Tuesday’s recovery.
It’s a similar picture elsewhere, with the German Dax down 1.7%.It’s a similar picture elsewhere, with the German Dax down 1.7%.
Volatility is “well and truly still alive in the markets this week”, remarks Augustin Eden of Accendo Markets.Volatility is “well and truly still alive in the markets this week”, remarks Augustin Eden of Accendo Markets.
8.00am BST08:008.00am BST08:00
Hold onto your (tin) hats. Europe’s stock markets are opening....Hold onto your (tin) hats. Europe’s stock markets are opening....
7.58am BST07:587.58am BST07:58
Markets have been particularly volatile this week because many investors are still on holiday, meaning less liquidity than usual.Markets have been particularly volatile this week because many investors are still on holiday, meaning less liquidity than usual.
David Buik, a City veteran who has lived through more market crashes than anyone else I know, says “normal working service” will resume next week.David Buik, a City veteran who has lived through more market crashes than anyone else I know, says “normal working service” will resume next week.
He also explains why yesterday’s Chinese interest rate cut isn’t enough:He also explains why yesterday’s Chinese interest rate cut isn’t enough:
The move by the Chinese authorities attracted considerable adverse criticism not only from the market but also from political heavyweights such as the Japanese Finance Minister, Aso-San, who was not backward in coming forward in implying that last week’s devaluation of the Yuan was ‘ham-fisted’ and unprofessional.The move by the Chinese authorities attracted considerable adverse criticism not only from the market but also from political heavyweights such as the Japanese Finance Minister, Aso-San, who was not backward in coming forward in implying that last week’s devaluation of the Yuan was ‘ham-fisted’ and unprofessional.
Market observers were also expressing real concern about the robustness of China’s banking sector and the potential threat of a major credit crisis. This issue is more acute than China’s growth contraction.Market observers were also expressing real concern about the robustness of China’s banking sector and the potential threat of a major credit crisis. This issue is more acute than China’s growth contraction.
Updated at 7.58am BSTUpdated at 7.58am BST
7.34am BST07:347.34am BST07:34
Don’t knock that Scottie Dog technical analysis. As feared, China’s stock market is shedding its gains in late trading.Don’t knock that Scottie Dog technical analysis. As feared, China’s stock market is shedding its gains in late trading.
And that means Europe’s selloff may be more dramatic:And that means Europe’s selloff may be more dramatic:
FTSE100 now expected to start -70 at 6011.FTSE100 now expected to start -70 at 6011.
7.28am BST07:287.28am BST07:28
Speaking of unexpected tumbles.....Speaking of unexpected tumbles.....
Sinkhole opens near NE China bus stop, 4 people fall in #XinhuaTV pic.twitter.com/X77aAl2ixzSinkhole opens near NE China bus stop, 4 people fall in #XinhuaTV pic.twitter.com/X77aAl2ixz
7.23am BST07:237.23am BST07:23
We’re into the crucial last hour of trading in China. Typically, we’ve seen sharp moves at the end of the day. Will today be different, or can Shanghai hold onto today’s gains?We’re into the crucial last hour of trading in China. Typically, we’ve seen sharp moves at the end of the day. Will today be different, or can Shanghai hold onto today’s gains?
This ‘technical analysis’ from FastFT’s Patrick McGee shows how the situation could deteriorate from here.....This ‘technical analysis’ from FastFT’s Patrick McGee shows how the situation could deteriorate from here.....
According to Scottie Dog pattern, Shanghai will see a peak around 2pm and a brisk decline into the close. @frostyhk pic.twitter.com/BPsOd9t8VZAccording to Scottie Dog pattern, Shanghai will see a peak around 2pm and a brisk decline into the close. @frostyhk pic.twitter.com/BPsOd9t8VZ
7.19am BST07:197.19am BST07:19
Japan’s stock market has closed for the day, with the Nikkei rallying by over 3%. That claws back some, but not all, of Tuesday’s losses.Japan’s stock market has closed for the day, with the Nikkei rallying by over 3%. That claws back some, but not all, of Tuesday’s losses.
Here’s the situation across Asia a moment ago:Here’s the situation across Asia a moment ago:
Updated at 7.26am BSTUpdated at 7.26am BST
7.14am BST07:147.14am BST07:14
European markets expected to open lowerEuropean markets expected to open lower
Hello all. It’s a grey day in London. Dark clouds everywhere, and rain on the way.Hello all. It’s a grey day in London. Dark clouds everywhere, and rain on the way.
And the mood on the City trading floor is also subdued. European stock markets are expected to fall back this morning, after yesterday’s big rally.And the mood on the City trading floor is also subdued. European stock markets are expected to fall back this morning, after yesterday’s big rally.
It’s expected to be a small drop, rather than a rout, as investors hunker down after several wild days.It’s expected to be a small drop, rather than a rout, as investors hunker down after several wild days.
IG expects all the main indices to drop at the open, in just under an hour’s time:IG expects all the main indices to drop at the open, in just under an hour’s time:
Our European opening calls: $FTSE 6057 down 25 $DAX 10028 down 100 $CAC 4531 down 34 $IBEX 10026 down 89 $MIB 21303 down 346Our European opening calls: $FTSE 6057 down 25 $DAX 10028 down 100 $CAC 4531 down 34 $IBEX 10026 down 89 $MIB 21303 down 346
I had been braced for bigger falls, after last night’s late tumble on Wall Street. But the sight of Asian market rising today (in volatile trading) has calmed the nerves, a little.I had been braced for bigger falls, after last night’s late tumble on Wall Street. But the sight of Asian market rising today (in volatile trading) has calmed the nerves, a little.
Michael Hewson of CMC Market explains:Michael Hewson of CMC Market explains:
While European markets basked in the afterglow of yesterday’s Chinese rate cuts, amidst optimism that we may have seen a base earlier this week, US markets inability to hold onto their gains and sink like a soggy blancmange are likely to see a negative open for Europe this morning, though a rebound in Asia has cushioned some of the effects.While European markets basked in the afterglow of yesterday’s Chinese rate cuts, amidst optimism that we may have seen a base earlier this week, US markets inability to hold onto their gains and sink like a soggy blancmange are likely to see a negative open for Europe this morning, though a rebound in Asia has cushioned some of the effects.
6.51am BST06:516.51am BST06:51
Claire PhippsClaire Phipps
I’m now handing over the wheel of this live blog to my colleague in London, Graeme Wearden, who will take you through the rest of the day’s markets ups and downs. Thanks for reading and for the comments.I’m now handing over the wheel of this live blog to my colleague in London, Graeme Wearden, who will take you through the rest of the day’s markets ups and downs. Thanks for reading and for the comments.
6.42am BST06:426.42am BST06:42
Why has the Shanghai Composite returned from its lunch break in more buoyant mood?Why has the Shanghai Composite returned from its lunch break in more buoyant mood?
George Chen, managing editor of the South China Morning Post international edition, has some thoughts:George Chen, managing editor of the South China Morning Post international edition, has some thoughts:
Gov funds are said to be buying large financial stocks, esp state-owned banks, to support index, clear signs of gov intevension - once againGov funds are said to be buying large financial stocks, esp state-owned banks, to support index, clear signs of gov intevension - once again
Post-midday V-shape rebounding comes at "good news" incl police arrest of top bankers, financial journalist, following central bank rate cutPost-midday V-shape rebounding comes at "good news" incl police arrest of top bankers, financial journalist, following central bank rate cut
Updated at 6.56am BSTUpdated at 6.56am BST
6.38am BST06:386.38am BST06:38
US president Barack Obama held a telephone conversation with Japanese prime minister Shinzo Abe on Wednesday morning, which touched upon economic issues.US president Barack Obama held a telephone conversation with Japanese prime minister Shinzo Abe on Wednesday morning, which touched upon economic issues.
Abe’s spokesman Yoshihide Suga said the two leaders agreed to work together on global economic issues in the wake of the stock market meltdown sparked by fears over China.Abe’s spokesman Yoshihide Suga said the two leaders agreed to work together on global economic issues in the wake of the stock market meltdown sparked by fears over China.
Obama and Abe also discussed market turmoil that has seen a massive global equities sell off after China cut the value of its yuan currency in an apparent bid to boost exports, sparking fears of an economic slowdown and the subsequent impact on global growth.Obama and Abe also discussed market turmoil that has seen a massive global equities sell off after China cut the value of its yuan currency in an apparent bid to boost exports, sparking fears of an economic slowdown and the subsequent impact on global growth.
They “will firmly work together on the economy issue”, Suga said, without elaborating.They “will firmly work together on the economy issue”, Suga said, without elaborating.
6.30am BST06:306.30am BST06:30
Shanghai is back from lunch and is having something of a rebound, up around 4%:Shanghai is back from lunch and is having something of a rebound, up around 4%:
6.23am BST06:236.23am BST06:23
Chris Weston, chief market strategist for IG, says the day’s action so far has allowed traders “to catch a much-needed breath”:Chris Weston, chief market strategist for IG, says the day’s action so far has allowed traders “to catch a much-needed breath”:
It still feels as though volatility can break out at any time and a quick 1-2% move in US futures, Nikkei, ASX 200 or Hang Seng could materialise at any time. Of course, these sort of moves will happen when the US volatility index (VIX) is at 36% (over double the year average) and the ASX VIX is at 28% (year average 16%). Things can get dicey quickly …It still feels as though volatility can break out at any time and a quick 1-2% move in US futures, Nikkei, ASX 200 or Hang Seng could materialise at any time. Of course, these sort of moves will happen when the US volatility index (VIX) is at 36% (over double the year average) and the ASX VIX is at 28% (year average 16%). Things can get dicey quickly …
At the time of writing, stronger buying is being seen in the Chinese equity markets, but price action is fairly whippy. The market has seen through yesterday’s 25 basis point cut in benchmark lending rate and the 50 basis point cut to the reserve ratio requirement (RRR). One questions why they didn’t ease over the weekend. The extra liquidity injected into the banking system would be somewhere between RMB650 billion and RMB700 billion, which sits nicely with the recent use of shorter-term liquidity tools. Most understand this easing for what it is: a policy move aimed at counteracting the tightening of financial conditions caused by sizeable capital outflows. This is not going to boost growth …At the time of writing, stronger buying is being seen in the Chinese equity markets, but price action is fairly whippy. The market has seen through yesterday’s 25 basis point cut in benchmark lending rate and the 50 basis point cut to the reserve ratio requirement (RRR). One questions why they didn’t ease over the weekend. The extra liquidity injected into the banking system would be somewhere between RMB650 billion and RMB700 billion, which sits nicely with the recent use of shorter-term liquidity tools. Most understand this easing for what it is: a policy move aimed at counteracting the tightening of financial conditions caused by sizeable capital outflows. This is not going to boost growth …
The focus now falls firmly back on the US, and specifically on New York Fed president Bill Dudley, who will field questions from the press on the local and regional economies. Mr Dudley’s views will be scrutinised by the market, and given the recent change in language last week from Dennis Lockhart (the Atlanta President), it’s hard to get a sense of whether he is going to give an indication of a September hike.The focus now falls firmly back on the US, and specifically on New York Fed president Bill Dudley, who will field questions from the press on the local and regional economies. Mr Dudley’s views will be scrutinised by the market, and given the recent change in language last week from Dennis Lockhart (the Atlanta President), it’s hard to get a sense of whether he is going to give an indication of a September hike.
6.15am BST06:156.15am BST06:15
You can read our latest report on today’s market developments here:You can read our latest report on today’s market developments here:
Related: Stock markets continue to be volatile as investors fear China riskRelated: Stock markets continue to be volatile as investors fear China risk
6.07am BST06:076.07am BST06:07
Fergus Ryan sends news from China of police action related to trading – and to the reporting of it:Fergus Ryan sends news from China of police action related to trading – and to the reporting of it:
Following the arrest of a couple of China Securities Regulatory Commission (CSRC) officials – one current and one former – for insider trading and faking documents, Chinese state media is now reporting that a journalist who was covering the agency is being investigated.Following the arrest of a couple of China Securities Regulatory Commission (CSRC) officials – one current and one former – for insider trading and faking documents, Chinese state media is now reporting that a journalist who was covering the agency is being investigated.
Caijing magazine has confirmed that its reporter Wang Xiaolu was summoned by police yesterday in connection with accusations of faking stock news.Caijing magazine has confirmed that its reporter Wang Xiaolu was summoned by police yesterday in connection with accusations of faking stock news.
Chinese stocks nosedived in late July after Wang reported in Caijing that the CSRC was studying exiting funds used to help buoy the stock market.Chinese stocks nosedived in late July after Wang reported in Caijing that the CSRC was studying exiting funds used to help buoy the stock market.
The regulator denied the reports at the time and reiterated that it would continue to stabilise the market and expectations, as well as to prevent systemic risks.The regulator denied the reports at the time and reiterated that it would continue to stabilise the market and expectations, as well as to prevent systemic risks.
The highly respected magazine said in a statement it would take responsibility for its reporters’ work.The highly respected magazine said in a statement it would take responsibility for its reporters’ work.
Earlier, local media reported that Xu Gang, the general manager of Citic Securities, the country’s number one brokerage, has been arrested. Chinese police are yet to provide a reason for the arrest.Earlier, local media reported that Xu Gang, the general manager of Citic Securities, the country’s number one brokerage, has been arrested. Chinese police are yet to provide a reason for the arrest.
It’s not the first time Chinese police have taken action in relation to the recent stock market turmoil.It’s not the first time Chinese police have taken action in relation to the recent stock market turmoil.
In early July, police visited CSRC offices to investigate alleged “malicious” short-selling of shares.In early July, police visited CSRC offices to investigate alleged “malicious” short-selling of shares.
Updated at 6.16am BSTUpdated at 6.16am BST
5.55am BST05:555.55am BST05:55
Summary: ups and downs across Asian marketsSummary: ups and downs across Asian markets
Justin McCurryJustin McCurry
Markets across Asia were holding their breath on Wednesday after early hopes that the worst of this week’s turmoil could be behind them were tempered by concern that China has not done enough to stabilise its economy.Markets across Asia were holding their breath on Wednesday after early hopes that the worst of this week’s turmoil could be behind them were tempered by concern that China has not done enough to stabilise its economy.
A day after China’s central bank lowered interest rates in an attempt to ease the crisis, most Asia-Pacific stocks suffered minor losses, while Japan’s Nikkei benchmark index mounted a modest comeback after six days of bruising losses.A day after China’s central bank lowered interest rates in an attempt to ease the crisis, most Asia-Pacific stocks suffered minor losses, while Japan’s Nikkei benchmark index mounted a modest comeback after six days of bruising losses.
“There is a sense of relief for now, and stocks with attractive valuations and higher dividend yields are in focus,” said Nobuhiko Kuramochi, a strategist at Mizuho Securities.“There is a sense of relief for now, and stocks with attractive valuations and higher dividend yields are in focus,” said Nobuhiko Kuramochi, a strategist at Mizuho Securities.
But in China, key share indexes moved up and down as investors continued to sell in a show of apprehension about the health of the world’s second biggest economy.But in China, key share indexes moved up and down as investors continued to sell in a show of apprehension about the health of the world’s second biggest economy.
“The whole market sentiment is still risk-off, which is why markets have taken the latest move from Beijing in its stride and believe more is needed to restore investor sentiment,” said Grace Tam, global markets strategist at JP Morgan Asset Management in Hong Kong.“The whole market sentiment is still risk-off, which is why markets have taken the latest move from Beijing in its stride and believe more is needed to restore investor sentiment,” said Grace Tam, global markets strategist at JP Morgan Asset Management in Hong Kong.
Tokyo stocks had opened higher amid guarded optimism over the Chinese central bank’s decision to cut interest rates for the fifth time in nine months.Tokyo stocks had opened higher amid guarded optimism over the Chinese central bank’s decision to cut interest rates for the fifth time in nine months.
The Nikkei briefly slipped back into negative territory, however, after China’s benchmark Shanghai Composite Index – ground zero for this week’s market meltdown – faltered yet again.The Nikkei briefly slipped back into negative territory, however, after China’s benchmark Shanghai Composite Index – ground zero for this week’s market meltdown – faltered yet again.
Investor confidence was also hit by a last-minute plunge on Wall Street on Tuesday.Investor confidence was also hit by a last-minute plunge on Wall Street on Tuesday.
The Dow Jones industrial average ended 204.91 points, or 1.3%, lower, having been up by as much as 441 points earlier in the day. Wall Street extended its losses for six straight days – its longest losing stretch for more than three years.The Dow Jones industrial average ended 204.91 points, or 1.3%, lower, having been up by as much as 441 points earlier in the day. Wall Street extended its losses for six straight days – its longest losing stretch for more than three years.
In early trading on Wednesday, the Shanghai index fell 1.8% but recovered to end the morning 0.8% up. Australian shares fell 0.5%. Stocks in New Zealand, Taiwan and Southeast Asia were mostly lower.In early trading on Wednesday, the Shanghai index fell 1.8% but recovered to end the morning 0.8% up. Australian shares fell 0.5%. Stocks in New Zealand, Taiwan and Southeast Asia were mostly lower.
The US dollar avoided any significant drops against the yen, bringing a little cheer to Japanese policymakers, who had voiced concern about the Japanese currency’s surges earlier in the week.The US dollar avoided any significant drops against the yen, bringing a little cheer to Japanese policymakers, who had voiced concern about the Japanese currency’s surges earlier in the week.
5.44am BST05:445.44am BST05:44
A new session high for the Nikkei: up 2.26% to 18.207.37.A new session high for the Nikkei: up 2.26% to 18.207.37.
The Chinese markers are still on their lunch break.The Chinese markers are still on their lunch break.
5.43am BST05:435.43am BST05:43
Agence France-Presse offers a different perspective on China’s struggles – the fate of Swiss luxury watch-makers:Agence France-Presse offers a different perspective on China’s struggles – the fate of Swiss luxury watch-makers:
Swiss watchmakers are facing turbulent times in one of their top markets, as the already shrinking luxury sales in China are compounded by the recent devaluation of the yuan.Swiss watchmakers are facing turbulent times in one of their top markets, as the already shrinking luxury sales in China are compounded by the recent devaluation of the yuan.
The move rattled the Alpine country’s luxury watchmakers, who have already seen their once booming sales in China take a hit as Beijing began to crack down on corruption in the country by banning extravagant gifts like prestigious watches to public officials.The move rattled the Alpine country’s luxury watchmakers, who have already seen their once booming sales in China take a hit as Beijing began to crack down on corruption in the country by banning extravagant gifts like prestigious watches to public officials.
Even before the yuan move, Swiss watch exports to China had contracted nearly 40% in July.Even before the yuan move, Swiss watch exports to China had contracted nearly 40% in July.
Shares of Swiss luxury goods giant Richemont, which owns brands like Cartier, Piaget and IWC, immediately shed more than 4.0% of their value after the Chinese currency cut.Shares of Swiss luxury goods giant Richemont, which owns brands like Cartier, Piaget and IWC, immediately shed more than 4.0% of their value after the Chinese currency cut.
The world’s biggest watch group Swatch, which carries brands like Tissot, Longines and Omega, saw its stock price plunge 3.9%.The world’s biggest watch group Swatch, which carries brands like Tissot, Longines and Omega, saw its stock price plunge 3.9%.
5.32am BST05:325.32am BST05:32
News comes in that Malaysian prime minister Najib Razak is to hold a press conference around now on the economy; I’ll keep an eye on what emerges from that.News comes in that Malaysian prime minister Najib Razak is to hold a press conference around now on the economy; I’ll keep an eye on what emerges from that.
5.28am BST05:285.28am BST05:28
A glance at some of the global front pages for Wednesday.A glance at some of the global front pages for Wednesday.
The South China Morning Post leads on “stock turmoil” and the bank rate cuts:The South China Morning Post leads on “stock turmoil” and the bank rate cuts:
Wednesday's front pages of The South China Morning Post. To subscribe, find out more here: http://t.co/h56QweW28k pic.twitter.com/9Yz0f7kAeVWednesday's front pages of The South China Morning Post. To subscribe, find out more here: http://t.co/h56QweW28k pic.twitter.com/9Yz0f7kAeV
China’s Global Times also goes in on the interest rate cuts:China’s Global Times also goes in on the interest rate cuts:
Today's Global Times newspaper (August 26, 2015) http://t.co/kfvJpMeCvW , Mobile version http://t.co/KEdbsl78rs pic.twitter.com/EeqjVeYuGRToday's Global Times newspaper (August 26, 2015) http://t.co/kfvJpMeCvW , Mobile version http://t.co/KEdbsl78rs pic.twitter.com/EeqjVeYuGR
The International New York Times focuses on China’s stocks dive, but also points out the silence among Chinese state media (the People’s Daily decided not to mention Black Monday in its Tuesday edition; I haven’t yet been able to see a copy of Wednesday’s paper):The International New York Times focuses on China’s stocks dive, but also points out the silence among Chinese state media (the People’s Daily decided not to mention Black Monday in its Tuesday edition; I haven’t yet been able to see a copy of Wednesday’s paper):
Wednesday's International NY Times: Market crash makes nary a sound in state media #tomorrowspaperstoday #bbcpapers pic.twitter.com/QgQ5OLAh4rWednesday's International NY Times: Market crash makes nary a sound in state media #tomorrowspaperstoday #bbcpapers pic.twitter.com/QgQ5OLAh4r
And the UK’s Financial Times centres on the interest rate cuts:And the UK’s Financial Times centres on the interest rate cuts:
Wednesday's FT front page: Beijing cuts interest rates in bid to revive economy #tomorrowspaperstoday #bbcpapers pic.twitter.com/JTwepwAJnfWednesday's FT front page: Beijing cuts interest rates in bid to revive economy #tomorrowspaperstoday #bbcpapers pic.twitter.com/JTwepwAJnf
5.15am BST05:155.15am BST05:15
As China hit midday, following a rollercoaster morning, the CSI300 index was up 1.7% and the Shanghai Composite Index was up 0.8%.As China hit midday, following a rollercoaster morning, the CSI300 index was up 1.7% and the Shanghai Composite Index was up 0.8%.
Still an afternoon to get through, of course …Still an afternoon to get through, of course …
4.28am BST04:284.28am BST04:28
SummarySummary
A catch-up of this morning’s choppy activity, via Reuters:A catch-up of this morning’s choppy activity, via Reuters:
Asian stocks fell on Wednesday as investors feared fresh rate cuts in China would not be enough stabilise its cooling economy or halt a collapse in its stock markets.Asian stocks fell on Wednesday as investors feared fresh rate cuts in China would not be enough stabilise its cooling economy or halt a collapse in its stock markets.
China’s key share indexes attempted to move higher several times in early trade only to be slapped back by waves of selling, reflecting investors’ views that much more support was needed from the government and the central bank.China’s key share indexes attempted to move higher several times in early trade only to be slapped back by waves of selling, reflecting investors’ views that much more support was needed from the government and the central bank.
Following a near 20% plunge in stock prices in three days, the People’s Bank of China cut interest rates late on Tuesday and lowered the amount of reserves that banks must hold.Following a near 20% plunge in stock prices in three days, the People’s Bank of China cut interest rates late on Tuesday and lowered the amount of reserves that banks must hold.
While the double-barrelled policy moves were initially cheered by markets around the world, the impact did not last long as investors quickly resumed their focus on the deteriorating outlook for China and the global economy.While the double-barrelled policy moves were initially cheered by markets around the world, the impact did not last long as investors quickly resumed their focus on the deteriorating outlook for China and the global economy.
By midmorning, China’s CSI300 index was down 0.5% at 3,028.48 points, while the Shanghai Composite Index was down 1.3% at 2,925.97.By midmorning, China’s CSI300 index was down 0.5% at 3,028.48 points, while the Shanghai Composite Index was down 1.3% at 2,925.97.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.2% in early trade and was just shy of a three-year low hit in the previous session.MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.2% in early trade and was just shy of a three-year low hit in the previous session.
Japan’s Nikkei was the lone bright spot, rising 1.3%, while Australia fell 0.4%.Japan’s Nikkei was the lone bright spot, rising 1.3%, while Australia fell 0.4%.
In a sign of how fearful investors have become of risky assets, US stock index futures resumed their descent in early Asian trade with the US S&P 500 mini futures down 0.4%, nearing Monday’s 10-month low of 1,831.In a sign of how fearful investors have become of risky assets, US stock index futures resumed their descent in early Asian trade with the US S&P 500 mini futures down 0.4%, nearing Monday’s 10-month low of 1,831.
Overnight, major US stock indexes shot up after China’s policy easing but later gave up all their gains, with the S&P 500 ending down 1.4%.Overnight, major US stock indexes shot up after China’s policy easing but later gave up all their gains, with the S&P 500 ending down 1.4%.
US stock futures were down 0.2% in Asian trade, suggesting further weakness on Wall Street later in the day.US stock futures were down 0.2% in Asian trade, suggesting further weakness on Wall Street later in the day.
The CBOE Market Volatility Index was still elevated at 36, indicating significant uncertainty, even though it was below the previous day’s peak of 53.3, which was the highest level since January 2009.The CBOE Market Volatility Index was still elevated at 36, indicating significant uncertainty, even though it was below the previous day’s peak of 53.3, which was the highest level since January 2009.
In currencies, the dollar has also broadly lost steam as traders unwound massive carry trade bets in recent years based on higher yielding assets and instead flocked to safe-haven currencies such as euro and yen.In currencies, the dollar has also broadly lost steam as traders unwound massive carry trade bets in recent years based on higher yielding assets and instead flocked to safe-haven currencies such as euro and yen.
The euro was $1.1529, little changed from late US trade, but more than a full cent above Tuesday’s low of $1.1396.The euro was $1.1529, little changed from late US trade, but more than a full cent above Tuesday’s low of $1.1396.
The dollar also slipped back to 118.90, failing to maintain its brief foray above the 120 mark.The dollar also slipped back to 118.90, failing to maintain its brief foray above the 120 mark.
Updated at 4.29am BSTUpdated at 4.29am BST
4.14am BST04:144.14am BST04:14
Glenn Stevens, governor of the Reserve Bank of Australia, has been speaking at an economic reform summit in Sydney – also attended by treasurer Joe Hockey; see here – about the country’s economic growth issues, AAP reports.Glenn Stevens, governor of the Reserve Bank of Australia, has been speaking at an economic reform summit in Sydney – also attended by treasurer Joe Hockey; see here – about the country’s economic growth issues, AAP reports.
Stevens said that despite record low interest rates and business and consumer confidence staying around average, economic growth has not been able to get to 3%.Stevens said that despite record low interest rates and business and consumer confidence staying around average, economic growth has not been able to get to 3%.
It may be that potential growth is a bit lower than we used to think, though I don’t think we can know whether that is so at present.It may be that potential growth is a bit lower than we used to think, though I don’t think we can know whether that is so at present.
The fiscal policy debate, usually framed as ‘when will we get back to surplus?’ is actually about ‘how do we get more growth?’The fiscal policy debate, usually framed as ‘when will we get back to surplus?’ is actually about ‘how do we get more growth?’
Other discussions, so often framed as about fairness that is income distribution might be better framed as ‘how do we grow the pie?’Other discussions, so often framed as about fairness that is income distribution might be better framed as ‘how do we grow the pie?’
Stevens said that the most people understand that economic policy is about increasing economic growth on a sustained basis and that most budget measures to improve growth are only short-term solutions:Stevens said that the most people understand that economic policy is about increasing economic growth on a sustained basis and that most budget measures to improve growth are only short-term solutions:
The kind of growth we want won’t be delivered just by central bank adjustments to interest rates or short-term fiscal initiatives that bring forward demand from next year, only to have to give it back then.The kind of growth we want won’t be delivered just by central bank adjustments to interest rates or short-term fiscal initiatives that bring forward demand from next year, only to have to give it back then.
A key question worth asking is ‘how do we generate more growth?’ Not temporary, flash-in-the-pan growth, but sustainable growth.A key question worth asking is ‘how do we generate more growth?’ Not temporary, flash-in-the-pan growth, but sustainable growth.
4.01am BST04:014.01am BST04:01
Nikkei up 0.5%, Hang Seng up 0.2%Nikkei up 0.5%, Hang Seng up 0.2%
Justin McCurryJustin McCurry
Japan’s main Nikkei 225 stock index ended the morning up 0.5% at 17,896.23, while other Asian stocks fell then rose on what promises to be another unpredictable day of trading.Japan’s main Nikkei 225 stock index ended the morning up 0.5% at 17,896.23, while other Asian stocks fell then rose on what promises to be another unpredictable day of trading.
Hong Kong’s Hang Seng index was up 0.2%, while China’s benchmark Shanghai Composite index source, the victim of a severe bruising earlier in the week, fell 0.4%.Hong Kong’s Hang Seng index was up 0.2%, while China’s benchmark Shanghai Composite index source, the victim of a severe bruising earlier in the week, fell 0.4%.
Shares in Australia, New Zealand, Taiwan and Southeast Asia were mostly down.Shares in Australia, New Zealand, Taiwan and Southeast Asia were mostly down.
Some analysts said that fears of a prolonged crisis may have been overblown, but warned that the region should expect more volatility.Some analysts said that fears of a prolonged crisis may have been overblown, but warned that the region should expect more volatility.
“Asia remains the epicentre of the current market instability,” Evan Lucas of IG said.“Asia remains the epicentre of the current market instability,” Evan Lucas of IG said.
“Market ‘stability’ will then come from this region –however the slide in China and Japan suggest sentiment is ruling price action and hyper-fear trading is still in control.”“Market ‘stability’ will then come from this region –however the slide in China and Japan suggest sentiment is ruling price action and hyper-fear trading is still in control.”
Updated at 4.04am BSTUpdated at 4.04am BST
3.51am BST03:513.51am BST03:51
Chinese markets have been choppy in early morning trade as investors reacted to a Tuesday evening rate cut from the People’s Bank of China, Fergus Ryan reports.Chinese markets have been choppy in early morning trade as investors reacted to a Tuesday evening rate cut from the People’s Bank of China, Fergus Ryan reports.
Seventy minutes into trading and shares on the Shanghai composite had fallen -3.32% to 2,866.45 after seesawing all morning.Seventy minutes into trading and shares on the Shanghai composite had fallen -3.32% to 2,866.45 after seesawing all morning.
3.43am BST03:433.43am BST03:43
And here’s that snapshot spelled out.And here’s that snapshot spelled out.
Within the first 20 minutes of trading today, the Shanghai Composite:Within the first 20 minutes of trading today, the Shanghai Composite:
After half an hour, it was up 0.74%, or 21.84 points, to 2,986.81.After half an hour, it was up 0.74%, or 21.84 points, to 2,986.81.
On China’s second exchange, the Shenzhen Composite Index was down 0.12%, or 2.07 points, to 1,747.00.On China’s second exchange, the Shenzhen Composite Index was down 0.12%, or 2.07 points, to 1,747.00.
3.34am BST03:343.34am BST03:34
This snapshot via Google Finance gives an indication of the volatility of the Shanghai Composite in its first hour this morning:This snapshot via Google Finance gives an indication of the volatility of the Shanghai Composite in its first hour this morning:
3.29am BST03:293.29am BST03:29
Meanwhile, Fergus Ryan reports from Beijing, a new survey out today indicates the recent stock market volatility may not be affecting Chinese consumer sentiment.Meanwhile, Fergus Ryan reports from Beijing, a new survey out today indicates the recent stock market volatility may not be affecting Chinese consumer sentiment.
The Westpac MNI China Consumer Sentiment Indicator rose in August, the third straight month it has done so.The Westpac MNI China Consumer Sentiment Indicator rose in August, the third straight month it has done so.
The indicator rose 1.8% for the month – the highest it has been since May 2014.The indicator rose 1.8% for the month – the highest it has been since May 2014.
Westpac economist Huw McKay said that while global investors were increasingly anxious about China’s growth prospects, Chinese consumers are more sanguine.Westpac economist Huw McKay said that while global investors were increasingly anxious about China’s growth prospects, Chinese consumers are more sanguine.
“The Chinese economy remains a major source of concern for global investors. This anxiety is shared to some degree by Chinese households, but where foreign scepticism vis-à-vis growth prospects appears to be deepening, consumers are tentatively marking up growth prospects, albeit from a very low level” he said.“The Chinese economy remains a major source of concern for global investors. This anxiety is shared to some degree by Chinese households, but where foreign scepticism vis-à-vis growth prospects appears to be deepening, consumers are tentatively marking up growth prospects, albeit from a very low level” he said.
However, it’s important to note the survey was conducted before China’s surprise currency devaluation move and before blasts ripped through a chemical warehouse in Tianjin this month.However, it’s important to note the survey was conducted before China’s surprise currency devaluation move and before blasts ripped through a chemical warehouse in Tianjin this month.
3.20am BST03:203.20am BST03:20
China’s response on Tuesday to the previous day’s precipitous falls had a marked effect on markets yesterday and will no doubt continue to do so today.China’s response on Tuesday to the previous day’s precipitous falls had a marked effect on markets yesterday and will no doubt continue to do so today.
The key moves by the People’s Bank of China were:The key moves by the People’s Bank of China were:
Interest rates in the country are now at an all-time low after having averaged 6.36% since a high of 10.98% in June 1996.Interest rates in the country are now at an all-time low after having averaged 6.36% since a high of 10.98% in June 1996.
Larry Elliott, the Guardian’s economics editor, called it a “measured response”:Larry Elliott, the Guardian’s economics editor, called it a “measured response”:
Beijing had the scope to do more to boost confidence after the turmoil of recent days, but has opted for a more measured approach at this stage.Beijing had the scope to do more to boost confidence after the turmoil of recent days, but has opted for a more measured approach at this stage.
There are reasons for this. Capital has been leaving China at a rapid rate in recent weeks, and a big reduction in interest rates would have provided extra encouragement for investors to take their money elsewhere.There are reasons for this. Capital has been leaving China at a rapid rate in recent weeks, and a big reduction in interest rates would have provided extra encouragement for investors to take their money elsewhere.
The official line up until now has been that the Chinese economy is slowing in line with expectations rather than in the early stages of a full-blown recession. Slashing interest rates would have been seen as evidence that the economy was indeed suffering a hard landing and might have further damaged confidence.The official line up until now has been that the Chinese economy is slowing in line with expectations rather than in the early stages of a full-blown recession. Slashing interest rates would have been seen as evidence that the economy was indeed suffering a hard landing and might have further damaged confidence.
China wants to keep some of its powder dry. The statement issued by the PBoC, which talked about the downward pressure on the economy and the need to have more flexible policy tools to cope with the stock market blowout, reflects how concerned policymakers are about recent events.China wants to keep some of its powder dry. The statement issued by the PBoC, which talked about the downward pressure on the economy and the need to have more flexible policy tools to cope with the stock market blowout, reflects how concerned policymakers are about recent events.
3.11am BST03:113.11am BST03:11
More on the yuan, set today at its weakest level for four years:More on the yuan, set today at its weakest level for four years:
China’s yuan weakened early on Wednesday after aggressive monetary easing by the central bank on Tuesday evening.China’s yuan weakened early on Wednesday after aggressive monetary easing by the central bank on Tuesday evening.
The People’s Bank of China set the midpoint rate at 6.4043 per dollar prior to the market open, its weakest level since August 2011, and firmer than the previous day’s closing quote of 6.4124.The People’s Bank of China set the midpoint rate at 6.4043 per dollar prior to the market open, its weakest level since August 2011, and firmer than the previous day’s closing quote of 6.4124.
The spot market opened at 6.4181 per dollar and was changing hands at 6.4181 in early trade, 57 pips away from the previous close and 0.22% away from the midpoint.The spot market opened at 6.4181 per dollar and was changing hands at 6.4181 in early trade, 57 pips away from the previous close and 0.22% away from the midpoint.
The spot rate is allowed to trade with a range 2% above or below the official fixing on any given day.The spot rate is allowed to trade with a range 2% above or below the official fixing on any given day.
The offshore yuan was trading -1.18% away from the onshore spot at 6.495 per dollar.The offshore yuan was trading -1.18% away from the onshore spot at 6.495 per dollar.
In a long-awaited move which some economists said was overdue, the People’s Bank of China (PBOC) said it was cutting the one-year benchmark bank lending rate by 25 basis points to 4.6% and reducing reserve requirements (RRR) by 50 basis points to 18% for most big banks.In a long-awaited move which some economists said was overdue, the People’s Bank of China (PBOC) said it was cutting the one-year benchmark bank lending rate by 25 basis points to 4.6% and reducing reserve requirements (RRR) by 50 basis points to 18% for most big banks.
Premier Li Keqiang was quoted by state television as saying that there is no basis for continued depreciation of the yuan on Tuesday.Premier Li Keqiang was quoted by state television as saying that there is no basis for continued depreciation of the yuan on Tuesday.
The central bank stunned global markets by devaluing the currency by nearly 2% on 11 August and then scrambled to stabilise it. However, many investors fear there is strong political pressure to allow it to slowly weaken further lower to boost weak exports and the cooling economy.The central bank stunned global markets by devaluing the currency by nearly 2% on 11 August and then scrambled to stabilise it. However, many investors fear there is strong political pressure to allow it to slowly weaken further lower to boost weak exports and the cooling economy.
That report via Reuters in Shanghai.That report via Reuters in Shanghai.
3.01am BST03:013.01am BST03:01
My colleague Fergus Ryan sends this latest from an edgy morning in China:My colleague Fergus Ryan sends this latest from an edgy morning in China:
The central bank’s move to ease monetary policy buoyed stocks at the opening of trade on Wednesday, but experts are questioning whether the rally will be durable.The central bank’s move to ease monetary policy buoyed stocks at the opening of trade on Wednesday, but experts are questioning whether the rally will be durable.
The Shanghai Composite has swung wildly in morning trade but appears to be flirting with the 3000-point mark.The Shanghai Composite has swung wildly in morning trade but appears to be flirting with the 3000-point mark.
2.54am BST02:542.54am BST02:54
Taiwan stocks have fallen this morning.Taiwan stocks have fallen this morning.
As of 1:40 GMT (that’s about 10 minutes ago), the main TAIEX index was off 0.8%, to 7,613.24 points, with the electronics subindex giving up 0.5% and the financials subindex dropping 0.6%, Reuters reports from Taipei.As of 1:40 GMT (that’s about 10 minutes ago), the main TAIEX index was off 0.8%, to 7,613.24 points, with the electronics subindex giving up 0.5% and the financials subindex dropping 0.6%, Reuters reports from Taipei.
On Tuesday, the main ended up 3.6% after the government said a large state-supported fund will step in “any time” to shore up the sagging market.On Tuesday, the main ended up 3.6% after the government said a large state-supported fund will step in “any time” to shore up the sagging market.
TSMC, the world’s top contract chip maker, was off 1.6%. Mediatek, Taiwan’s biggest chip design house, lost 2%.TSMC, the world’s top contract chip maker, was off 1.6%. Mediatek, Taiwan’s biggest chip design house, lost 2%.
The Taiwan dollar firmed T$0.311 to T$32.568 per US dollar.The Taiwan dollar firmed T$0.311 to T$32.568 per US dollar.
2.48am BST02:482.48am BST02:48
Australia opens down 1%Australia opens down 1%
Australian prime minister Tony Abbott has said the global economy is not a “one-way escalator”, adding that the instability in world stock markets was a correction after “over-exuberance” in the Chinese market earlier in the year, the AAP news agency reports.Australian prime minister Tony Abbott has said the global economy is not a “one-way escalator”, adding that the instability in world stock markets was a correction after “over-exuberance” in the Chinese market earlier in the year, the AAP news agency reports.
“Australians have every reason to face the future with confidence not withstanding the headwinds overseas,” Abbott said.“Australians have every reason to face the future with confidence not withstanding the headwinds overseas,” Abbott said.
The Australian share market opened 1% lower on Wednesday.The Australian share market opened 1% lower on Wednesday.
At 1010 AEST (0010 GMT) on Wednesday, the benchmark S&P/ASX200 index was down 51.4 points, or 1.00%, at 5,085.9, while the broader All Ordinaries index was down 49.4 points, or 0.96%, at 5,094.4.At 1010 AEST (0010 GMT) on Wednesday, the benchmark S&P/ASX200 index was down 51.4 points, or 1.00%, at 5,085.9, while the broader All Ordinaries index was down 49.4 points, or 0.96%, at 5,094.4.
On the ASX 24, the September share price index futures contract was down 69 points at 5,058, with 25,730 contracts traded.On the ASX 24, the September share price index futures contract was down 69 points at 5,058, with 25,730 contracts traded.
Treasurer Joe Hockey, speaking on the sidelines of a summit in Sydney on economic reform, warned:Treasurer Joe Hockey, speaking on the sidelines of a summit in Sydney on economic reform, warned:
There will be volatility in the markets. There are extraordinary capital flows around the world at the moment, in part linked to speculation about the US federal reserve increasing rates.There will be volatility in the markets. There are extraordinary capital flows around the world at the moment, in part linked to speculation about the US federal reserve increasing rates.
Frankly, you’ve got to see through the volatility and look at the fundamentals and the fundamentals are Australian companies are profitable, they’re well run and Australia is in a very good position for the future.Frankly, you’ve got to see through the volatility and look at the fundamentals and the fundamentals are Australian companies are profitable, they’re well run and Australia is in a very good position for the future.
Updated at 2.52am BSTUpdated at 2.52am BST
2.42am BST02:422.42am BST02:42
And then, six minutes into trading:And then, six minutes into trading:
Shanghai Composite turns negative.Shanghai Composite turns negative.
China shares: Shanghai Composite up 0.53% at the open after rate cut, but back in negative territory after 6 mins trade. Long day ahead.China shares: Shanghai Composite up 0.53% at the open after rate cut, but back in negative territory after 6 mins trade. Long day ahead.
2.39am BST02:392.39am BST02:39
China's major stock indexes open upChina's major stock indexes open up
Reuters files this snap summary from China openings:Reuters files this snap summary from China openings:
China’s major stock indexes opened up on Wednesday after aggressive monetary easings announced by the central bank on Tuesday evening following a massive market slide.China’s major stock indexes opened up on Wednesday after aggressive monetary easings announced by the central bank on Tuesday evening following a massive market slide.
The CSI300 index rose 0.7% to 3,062.57 points, while the Shanghai Composite Index gained 0.5% to 2,980.79 points.The CSI300 index rose 0.7% to 3,062.57 points, while the Shanghai Composite Index gained 0.5% to 2,980.79 points.
The benchmark indexes had tumbled 19% in the previous three sessions.The benchmark indexes had tumbled 19% in the previous three sessions.
China CSI300 stock index futures for September rose 0.4%, to 2,842, -220.57 points below the current value of the underlying index.China CSI300 stock index futures for September rose 0.4%, to 2,842, -220.57 points below the current value of the underlying index.
The People’s Bank of China cut interest rates and lowered the amount of reserves banks must hold for the second time in two months on Tuesday, ratcheting up support for a stumbling economy and a plunging stock market.The People’s Bank of China cut interest rates and lowered the amount of reserves banks must hold for the second time in two months on Tuesday, ratcheting up support for a stumbling economy and a plunging stock market.
China’s Financial Futures Exchanges announced on Wednesday morning that they will raise transaction fees and margin requirements for index futures to curb speculation.China’s Financial Futures Exchanges announced on Wednesday morning that they will raise transaction fees and margin requirements for index futures to curb speculation.
Benchmark mainland indexes gave up all the gains made from Beijing’s unprecedented stock market rescue in July, in which hundreds of billions of dollars were directed into the market, and this week entered negative territory for the year-to-date.Benchmark mainland indexes gave up all the gains made from Beijing’s unprecedented stock market rescue in July, in which hundreds of billions of dollars were directed into the market, and this week entered negative territory for the year-to-date.
The Hang Seng index in Hong Kong was up 0.1%, to 21,434.25 points.The Hang Seng index in Hong Kong was up 0.1%, to 21,434.25 points.
2.31am BST02:312.31am BST02:31
Yuan fixed at lowest level since August 2011Yuan fixed at lowest level since August 2011
Shanghai composite is up by 0.98% in its first 15 minutes.Shanghai composite is up by 0.98% in its first 15 minutes.
2.25am BST02:252.25am BST02:25
Justin McCurryJustin McCurry
The US dollar has so far avoided any significant drops against the yen, bringing some cheer to Japanese policymakers, who had voiced concern about the Japanese currency’s surges earlier in the week.The US dollar has so far avoided any significant drops against the yen, bringing some cheer to Japanese policymakers, who had voiced concern about the Japanese currency’s surges earlier in the week.
A weaker yen is a central part of Japanese prime minister Shinzo Abe’s quest to boost profits for his country’s auto and consumer electronics manufacturers. A strong yen, however, eats into exporters’ profits once they are repatriated from overseas.A weaker yen is a central part of Japanese prime minister Shinzo Abe’s quest to boost profits for his country’s auto and consumer electronics manufacturers. A strong yen, however, eats into exporters’ profits once they are repatriated from overseas.
The dollar was trading in the upper 118 yen range on Wednesday morning in Tokyo after suffering another drop on Wall Street overnight.The dollar was trading in the upper 118 yen range on Wednesday morning in Tokyo after suffering another drop on Wall Street overnight.
The US currency fetched 118.67-69 yen compared with 118.81-91 yen in New York and 119.72-75 yen in Tokyo late on Tuesday.The US currency fetched 118.67-69 yen compared with 118.81-91 yen in New York and 119.72-75 yen in Tokyo late on Tuesday.
On Monday, the dollar had dipped to as low as 116.15 yen in New York, prompting Japan’s finance minister, Taro Aso, to warn investors not to push the yen up too far.On Monday, the dollar had dipped to as low as 116.15 yen in New York, prompting Japan’s finance minister, Taro Aso, to warn investors not to push the yen up too far.
Investors regard the yen as a “safe haven” currency when global markets are hit by the kind of turmoil witnessed in recent days.Investors regard the yen as a “safe haven” currency when global markets are hit by the kind of turmoil witnessed in recent days.
2.20am BST02:202.20am BST02:20
Will no one think of the billionaires?Will no one think of the billionaires?
Bloomberg says 24 billionaires saw their wealth fall by more than $1bn on China’s Black Monday.Bloomberg says 24 billionaires saw their wealth fall by more than $1bn on China’s Black Monday.
The biggest loser was the richest man in Asia, Chinese tycoon Wang Jianlin, who lost US$3.6bn, the Bloomberg Billionaires Index says. He still has US$31.2bn left.The biggest loser was the richest man in Asia, Chinese tycoon Wang Jianlin, who lost US$3.6bn, the Bloomberg Billionaires Index says. He still has US$31.2bn left.
Microsoft founder Bill Gates was the second biggest loser of the day, with US$3.2bn wiped from his fortunes.Microsoft founder Bill Gates was the second biggest loser of the day, with US$3.2bn wiped from his fortunes.
Hong Kong resident Li Ka-shing came in third, with a loss of US$1.5bn, followed by Jack Ma, founder of ecommerce group Alibaba and the third richest man in Asia, who waved goodbye to US$546m.Hong Kong resident Li Ka-shing came in third, with a loss of US$1.5bn, followed by Jack Ma, founder of ecommerce group Alibaba and the third richest man in Asia, who waved goodbye to US$546m.
Updated at 2.25am BSTUpdated at 2.25am BST
2.11am BST02:112.11am BST02:11
Reuters reports from Manila that gold has edged up this morning following its biggest drop in five weeks, as global equities were revived after China cut interest rates and bank reserve requirements to support a flagging economy.Reuters reports from Manila that gold has edged up this morning following its biggest drop in five weeks, as global equities were revived after China cut interest rates and bank reserve requirements to support a flagging economy.
But China’s move appears to have only boosted equities temporarily, with US stock futures resuming their descent and Asian shares slightly lower. Further losses in equities could switch appetite back to safe-haven assets such as gold.But China’s move appears to have only boosted equities temporarily, with US stock futures resuming their descent and Asian shares slightly lower. Further losses in equities could switch appetite back to safe-haven assets such as gold.
2.05am BST02:052.05am BST02:05
Meanwhile, back to China, where all is rosy, according to Xinhua, the state’s official news agency:Meanwhile, back to China, where all is rosy, according to Xinhua, the state’s official news agency:
Despite the tumbling of stock markets, investors should forgo their unnecessary anxiety over China because the long-term prediction for China’s economy still remains rosy and Beijing has the will and means to avert a financial crisis.Despite the tumbling of stock markets, investors should forgo their unnecessary anxiety over China because the long-term prediction for China’s economy still remains rosy and Beijing has the will and means to avert a financial crisis.
The plunge of stocks, the depreciation of China’s currency and its slowing growth pace after years of high-speed development have all put a question mark on the health of the world’s second largest economy.The plunge of stocks, the depreciation of China’s currency and its slowing growth pace after years of high-speed development have all put a question mark on the health of the world’s second largest economy.
However, such a worry is completely unnecessary. China’s economy will remain robust and the positive prediction on its future should not be affected by the current fluctuation of stock markets.However, such a worry is completely unnecessary. China’s economy will remain robust and the positive prediction on its future should not be affected by the current fluctuation of stock markets.
International investors should calm themselves down and drop their unfounded anxiety over China’s economic future.International investors should calm themselves down and drop their unfounded anxiety over China’s economic future.
That’s all OK, then.That’s all OK, then.
2.00am BST02:002.00am BST02:00
Here’s a reminder of how things looked from the US at the close of Tuesday, with the Nasdaq, the Dow and the S&P 500 all down at the closing bell:Here’s a reminder of how things looked from the US at the close of Tuesday, with the Nasdaq, the Dow and the S&P 500 all down at the closing bell:
1.54am BST01:541.54am BST01:54
Nikkei falls 0.22% in first 15 minutes of tradingNikkei falls 0.22% in first 15 minutes of trading
Justin McCurryJustin McCurry
And the Guardian’s Justin McCurry sends this from Tokyo:And the Guardian’s Justin McCurry sends this from Tokyo:
More volatility has hit Japanese stocks this morning, after further losses on Wall Street, a rate cut by China’s central bank and a rebound in European stocks.More volatility has hit Japanese stocks this morning, after further losses on Wall Street, a rate cut by China’s central bank and a rebound in European stocks.
In the first 15 minutes of trading in Tokyo, the Nikkei fell 39.6 points, or 0.22%, following a drop of nearly 4% on Tuesday.In the first 15 minutes of trading in Tokyo, the Nikkei fell 39.6 points, or 0.22%, following a drop of nearly 4% on Tuesday.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 2.83 points, or 0.20%, with insurance firms, banks and the retail sector among those starting the day on an upward curve.The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 2.83 points, or 0.20%, with insurance firms, banks and the retail sector among those starting the day on an upward curve.
1.51am BST01:511.51am BST01:51
Tom PhillipsTom Phillips
My colleague Tom Phillips sends this update from Beijing:My colleague Tom Phillips sends this update from Beijing:
This what China’s Global Times newspaper has to say this morning about the country’s week of stock market chaos and what it tells us about the wider economy.This what China’s Global Times newspaper has to say this morning about the country’s week of stock market chaos and what it tells us about the wider economy.
The Communist party-controlled paper dismissed foreign doomsayers who are warning of a major financial slowdown here:The Communist party-controlled paper dismissed foreign doomsayers who are warning of a major financial slowdown here:
The Asian stock market followed the fall of the Chinese stock market on Monday, but surged yesterday. This shows that the outside came to realise that the Chinese stock market and the economy are not closely related.The Asian stock market followed the fall of the Chinese stock market on Monday, but surged yesterday. This shows that the outside came to realise that the Chinese stock market and the economy are not closely related.
The crash has made many people lose heart, but a severe financial or social impact may not come soon.The crash has made many people lose heart, but a severe financial or social impact may not come soon.
The economy won’t come to a halt. The driving forces for medium- and high-speed growth still exist, and new impetus for the economic boom has been injected into the economy through reforms.The economy won’t come to a halt. The driving forces for medium- and high-speed growth still exist, and new impetus for the economic boom has been injected into the economy through reforms.
1.44am BST01:441.44am BST01:44
Markets in Seoul are open, with the Korea Composite Stock Price Index (Kospi) dropping a little in the first 15 minutes of trading: down 0.45 points (0.02%) to 1,846.18.Markets in Seoul are open, with the Korea Composite Stock Price Index (Kospi) dropping a little in the first 15 minutes of trading: down 0.45 points (0.02%) to 1,846.18.
Samsung Electronics fell 1.48% and Shinhan Financial Group slid by 2.11%, the Yonhap news agency reports.Samsung Electronics fell 1.48% and Shinhan Financial Group slid by 2.11%, the Yonhap news agency reports.
But Hyundai Motor (+1.69%) and Kia Motors (+2.73%) were up.But Hyundai Motor (+1.69%) and Kia Motors (+2.73%) were up.
1.36am BST01:361.36am BST01:36
Opening summaryOpening summary
Claire PhippsClaire Phipps
With the Asian markets set to open shortly following days of turmoil, we will have live coverage here of the latest twists and turns.With the Asian markets set to open shortly following days of turmoil, we will have live coverage here of the latest twists and turns.
Tuesday saw world markets continue to seesaw after China’s Black Monday. As my colleague Dominic Rushe reports from New York:Tuesday saw world markets continue to seesaw after China’s Black Monday. As my colleague Dominic Rushe reports from New York:
The Dow Jones industrial average initially appeared to be bouncing back from “Black Monday” – a day when it crashed more than 1,000 points before ending the day down 586 points.The Dow Jones industrial average initially appeared to be bouncing back from “Black Monday” – a day when it crashed more than 1,000 points before ending the day down 586 points.
By noon the Dow was up over 300 points as European markets closed up and investors reacted positively to China’s decision to cut interest rates. But the Dow closed 205 points down, or 1.29%. The S&P 500 ended the day down 25 points, 1.34%, and the Nasdaq closed 0.39% down.By noon the Dow was up over 300 points as European markets closed up and investors reacted positively to China’s decision to cut interest rates. But the Dow closed 205 points down, or 1.29%. The S&P 500 ended the day down 25 points, 1.34%, and the Nasdaq closed 0.39% down.
The second day of drama came after investors continued to sell in China. The benchmark Shanghai composite index closed 7.6% lower on Tuesday following an 8.5% drop on Monday. Over three days the index has fallen 22%.The second day of drama came after investors continued to sell in China. The benchmark Shanghai composite index closed 7.6% lower on Tuesday following an 8.5% drop on Monday. Over three days the index has fallen 22%.
European markets reversed Monday’s losses but will be closely watched on Wednesday for reaction to the US news. In the UK, the FTSE 100 ended a 10-day losing streak to end up 3%, Germany’s Dax was up 5% and in France the CAC rose 4%.European markets reversed Monday’s losses but will be closely watched on Wednesday for reaction to the US news. In the UK, the FTSE 100 ended a 10-day losing streak to end up 3%, Germany’s Dax was up 5% and in France the CAC rose 4%.
Stay stuck to your screens for the latest news here; I’ll also tweet key developments @Claire_Phipps.Stay stuck to your screens for the latest news here; I’ll also tweet key developments @Claire_Phipps.
Related: US stock market gains wiped out to close second volatile day on Wall StreetRelated: US stock market gains wiped out to close second volatile day on Wall Street