Wall Street stocks dip after Chinese market tumbles
A 6.0 percent tumble in Chinese shares on Tuesday, and weak earnings from Wal-Mart pressured U.S. stocks and copper prices saw six year lows.
Chinese stocks earlier plunged on concerns that companies may pull more money out ofChina as economic growth slows, lowering earnings for U.S. and European companies dependent on revenue from China.
The Shanghai Composite Index .SSEC closed down 6.1 percent at 3,749.12 points in its biggest daily decline since July 27, after recovering for three days. The CSI300 index .CSI300 of the largest listed companies in Shanghai and Shenzhen fell 6.2 percent at 3,825.41.
Wal-Mart Stores Inc (WMT.N), the world’s largest retailer by revenue, saw its stock fall 3.4 percent to $69.48, and was the biggest drag on both the Dow Jones Industrial Average and S&P 500 stock index, after reporting weaker-than-expected quarterly earnings and lowering its full-year forecast.
“You would think that a 6.0 percent China move amid the recent currency adjustments would have netted a more negative result,” said Andre Bakhos, managing director at Janlyn Capital LLC in Bernardsville, New Jersey.
The Dow Jones industrial average .DJI fell 33.84 points, or 0.19 percent, to 17,511.34, the S&P 500 .SPX dropped 5.52 points, or 0.26 percent, to 2,096.92 and the Nasdaq Composite .IXIC declined 32.35 points, or 0.64 percent, to 5,059.35.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 1.2 percent after hitting its lowest since July 2013. Japan’s Nikkei .N225 dipped 0.3 percent.
MSCI’s all-country world stock index .MIWD00000PUS eased 0.31 percent.
Britain’s FTSE 100 .FTSE closed down 0.4 percent. The pan-European FTSEurofirst index of 300 leading shares managed a gain of 0.2 percent .FTEU3, after earlier declines. Germany’s DAX .GDAXI dropped 0.2 percent and France’s CAC 40 .FCHI fell 0.3 percent.
The worries about China came on a day when trade in the yuan was relatively calm after Beijing fixed the currency’s exchange rate marginally higher for the third successive session.
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