BEIJING, Jan. 7 (UPI) --
China triggered its
circuit-breaker stock mechanism to halt trading on Thursday, the second time this week as global markets fell in reaction.
After the more than 7 percent drop in the CSI 300, a benchmark of the largest 300 stocks listed in the Shanghai and Shenzhen markets, which respectively dropped 7.32 percent and 8.34 percent, China used the circuit-breaker -- further fueling uncertainty in investors through global markets.
After markets closed Thursday, Japan's Nikkei 225 index dropped 2.3 percent, Hong Kong's Hang Seng index was 3 percent lower and South Korea's Kospi index fell 1.1 percent.
In Europe, where most markets will soon close, Britain's FTSE 100 fell by 1.8 percent, Germany's DAX index was 2.5 percent lower and France's CAC 40 dropped 2.1 percent.
Shortly after opening in the United States, the Dow Jones Industrial Average, the S&P 500 and the NASDAQ all fell about 1 percent.
The circuit-breaker policy, first announced in December, triggers a 15 minute trading halt whenever there is a 5 percent rise or fall in the CSI 300. Trading stops for the rest of the day any time there is a 7 percent move -- or a 5 percent move in the 15 minutes before the market closes.
The second use of the trade-halt policy also sent crude oil prices tumbling further as Brent crude oil started trading Thursday in New York at $33.43 per barrel, down about 2.3 percent. West Texas Intermediate, the U.S. benchmark price for crude oil, was down 2.4 percent to $33.14.
The volatility in the Chinese market is attributed to underwhelming manufacturing data pointing to shrinking factory activity and a falling currency.
Source: United Press International
(January 7, 2016 - 11:46 AM EST)
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