U.S. Stocks Slump as China Rout, Fed Spur Demand for Treasuries
(Bloomberg) -- Wilfred Sit, the Hong Kong-based chief investment officer for Asia at Baring Asset Management, talks about China's stocks. At least 1,249 companies have halted trading on mainland Chinese exchanges, accounting for 43 percent of total listings. Sit speaks with Rishaad Salamat on Bloomberg Television's "Trending Business." (Source: Bloomberg)
U.S. stocks tumbled to a four-month low amid a disrupted day in the markets, with China’s equity rout igniting a wave of risk aversion and the Federal Reserve signaling concern over the turmoil there and in Greece. Treasuries rose with the yen, while American oil retreated.
The Standard & Poor’s 500 Index slid 1.7 percent by 4 p.m. in New York, with losses accelerating after the Fed released minutes of its June meeting. The benchmark gauge broke below its average price for the past 200 days and ended at the lowest level since March 11 amid a global stock retreat. Yields on 10-year Treasury notes dropped seven basis points to 2.19 percent, while the yen soared 1.5 percent. West Texas Intermediate crude fell 1.3 percent, and base metals rallied.