US stocks plunged on Thursday following turmoil on the Chinese stock market after another 7 per cent plunge there forced local exchanges to shut less than half an hour after opening.
Stocks around the globe are reeling from fallout from the Chinese stock market and a devaluation of its currency.
Markets in China were halted for the second time this week following the 7 per cent tumble. The stock circuit breaker responsible has since been abandoned by Chinese authorities.
Local stocks could extend yesterday’s losses following the global sell off overnight.
Markets
Wall Street closed sharply lower yesterday: The Dow Jones Industrial Average shed 2.3 per cent to close at 16,514, the S&P 500 lost 2.4 per cent to close at 1,943 and the NASDAQ lost 3 per cent to close at 4,689.
European markets also saw heavy losses: London’s FTSE was down 2 per cent, Paris lost 1.7 per cent and Frankfurt slipped 2.3 per cent.
Asian markets closed lower: Tokyo’s Nikkei tumbled 2.3 per cent, Hong Kong’s Hang Seng ended 3.1 per cent lower, and China’s Shanghai Composite plunged 7 per cent.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 113 points down to finish at 5,010. On the futures market the SPI is 63 points down.
Currencies
The Australian Dollar at 8.30AM was buying 70.09 US cents, 47.95 Pence Sterling, 82.46 Yen and 64.13 Euro cents.
Economic news
Due out today from the AIG is the Construction Index for December.
Company news
Woolworths Limited
(ASX:WOW) and Coles look set to be affected by super fund changes if a draft determination by the government allows their many thousands of employees to pick their own super fund. The freedom of choice could cost the retailers thousands in negotiated bulk discounts on super funds. Shares in Woolworths last traded 2.87 per cent down at $22.70.
Excelsior Gold Limited
(ASX:EXG) says it has finalized the purchase of the final 5 per cent interest in the Jackorite open pit mine. The miner holds an unencumbered 100 per cent interest in the tenement. Shares in Excelsior added 10.34 per cent to $0.096.
Commodities
Gold has advanced $17.00 to US$1,109 an ounce for the February contract on Comex. Silver is up 32 cents to $14.30 for March. Copper has slipped 7 cents to $2.02 a pound. Oil has back pedalled 79 cents to US$33.18 a barrel for February light crude in New York.
