Thursday, 7 January 2016

Markets tumble, China trading halted again

Markets fell across the globe on Wednesday as a nuclear test by North Korea added to the growing list of investors' concerns.

The S&P 500 fell 1.3 percent and Brent crude oil prices fell nearly 6 percent to hit new 11-year lows as the Thomson Reuters/CoreCommodity CRB index hit its lowest since August 2002.

Also worrying investors on Wednesday was China's continuing devaluation of the renminbi, with no sign of an end to the trend.

Indeed, on Thursday, the People’s Bank of China cut the yuan’s reference rate by 0.5 percent, the most since August last year.

The move triggerred yet another round of falls in equity markets, with China’s CSI 300 Index in particular plunging 7.2 percent on Thursday, forcing trading to be halted by automatic circuit breakers for the second time this week.

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