Global stocks fall, yen jumps on China turmoil; glitch hits NYSE trading

Wed Jul 8, 2015 5:29pm EDT
 
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By Caroline Valetkevitch

NEW YORK (Reuters) - World stock indexes fell and the yen jumped against the dollar on Wednesday on concerns over China's market turmoil and lingering worries over the future of Greece in the euro zone.

U.S. stocks ended sharply lower, with investors also unnerved by a more than three-hour suspension in New York Stock Exchange trading. A technical glitch forced the halt, not a cyberattack, the exchange said.

Chinese shares have lost more than 30 percent in value since mid-June and investors are worried the market turmoil there could destabilize the global economy.

The yen rose to a seven-week high against the dollar as investors sought safe-haven assets. U.S.-dollar denominated Nikkei futures NKc1 were down 5.5 percent, on track for their biggest daily drop since Aug. 8, 2011.

"I don't think the Greece situation is a focus in the markets beyond the short term," said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York. "This is really about China, where the selloff continues unabated despite efforts by People's Bank of China to halt this."

MSCI's all-country equities world index .MIWD00000PUS lost 1.2 percent, while the Dow Jones industrial average .DJI fell 261.49 points, or 1.47 percent, to 17,515.42.

The S&P 500 .SPX lost 34.66 points, or 1.67 percent, to 2,046.68 and the Nasdaq Composite .IXIC dropped 87.70 points, or 1.75 percent, to 4,909.76.

European shares .FTEU3 ended up 0.1 percent, snapping a four-day losing streak.   Continued...

 
A trader waits for news while working on the floor of the New York Stock Exchange following a halt in trading in New York, July 8, 2015.  REUTERS/Lucas Jackson