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U.S. Stocks Fuel Global Retreat on Oil Slump, China; Gold Climbs

  • China cut its yuan fixing by the most in more than a month
  • S&P 500 drops from six-week high as European shares slide
Bloomberg business news

The Impact of a Bounce in Oil, Fed Rate on Markets

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Investors got a reminder on Tuesday of their vulnerability to old threats, as China’s management of its currency and a selloff in oil jarred equity markets and spurred demand for haven assets.

U.S. stocks slumped from six-week highs, with the Dow Jones Industrial Average falling more than 180 points as crude dropped on concern OPEC members won’t curb output. Equities from Europe to emerging markets slid earlier in the session after China’s central bank unexpectedly weakened the reference rate used for managing the yuan, rekindling concern over the state of the world’s second-largest economy. The yen rose with gold and Treasuries advanced. Sugar surged the most in 22 years on prospects of an output deficit.