TSX, Wall Street slip as focus shifts to Fed

Another drop in China’s currency sent global markets mostly lower on Wednesday as the move raised worries about the world’s second-largest economy, but US stocks finished mostly higher Wednesday as an afternoon rally led by Apple and energy equities overcame early weakness on fears about an economic slowdown in China. The Nasdaq Composite was off less than 1 percent after dipping 1.5 percent as Apple initially extended losses and biotechs declined.

The Dow Jones Industrial Common misplaced 193 factors, or 1.2%, at 17,206, and is trying to submit a decline for 9 out of the final 10 days. The CBOE Volatility index, a measure of the premium traders are willing to pay for protection against a drop in the S&P 500, jumped as much as 18.7 percent to 16.28, its highest level in a month. The S&P energy index was down 1.3 percent.

“The move higher in the stock market this morning feels more like bargain hunting rather than a genuine feeling that China’s economy will improve, despite its overnight bounce”, IG market analyst David Madden said in a note. However, the company said that it took in orders totaling $2.89 billion, up 17% from the same quarter a year ago and outpacing expectations of $2.5 billion. Infant formulation manufacturer Mead Johnson Nutrition, in the meantime, obtained 31% of the income from China, although electrical vehicle manufacturer Tesla continues to be having actions to market in China after the country had a record for vehicle sales in 2013. China’s yuan fell again as its central bank set a lower guidance rate for the yuan against the dollar for a third day, but the decline was smaller than in previous trading sessions. Investors also sorted through a series of mixed retail sales and jobless-claims data, searching for further hints as to when the U.S. Federal Reserve will lift interest rates this year. Macy’s fell 5.5 percent to $63.82 after it also reported weak quarterly sales. Yahoo, which has a large stake in Alibaba, fell 4.3 per cent.

Crude oil futures in New York ended at a more than six-year low. The Index values are calculated on an end-of-day basis, and are available in Indian Rupees and US Dollars.

On the losing front, cloud computer and storage firm Netlist (NASDAQ:NLST) sank 12% to US$0.440 as it posted second quarter results, which appeared to disappoint.

The broader Topix fell 1.3 percent to 1,665.75 in heavy trading volume, with turnover reaching more than 3 trillion yen, about 25 percent above the average in the past year.

The People’s Bank of China identified the 1.9% drop a one time adjusting.