Stocks sink as Chinese yuan weakens further
Another drop in China’s currency sent global stocks lower on Wednesday as the move raised worries about weakness in the world’s second-largest economy.
The Dow Jones industrial average lost 188 points, or 1.1 percent, to 17,214 as of 10 a.m. Eastern time. The Standard & Poor’s 500 index fell 20 points, or 0.9 percent, to 2,064, and the Nasdaq composite lost 55 points, or 1.1 percent, to 4,982.
Major markets in Europe continued their slide. Germany’s DAX dropped 2.9 percent, France’s CAC- 40 dropped 3.1 percent, while Britain’s FTSE 100 lost 1.4 percent.
U. S. employers filled more of their available jobs in June, evidence that steady if modest economic growth is putting more Americans to work.
The Labor Department
said Wednesday that total hiring rose 2.3 percent to 5.18 million in June, the most in six months and second-highest total since the recession ended in June 2009.
Employers posted fewer job openings, but that figure has risen strongly in the past year. And more people quit their jobs, which is a good sign because many people quit when they have new jobs lined up, typically at higher pay. More hiring, quitting and healthy levels of job openings could pressure companies to wages.
Hiring and quits “remain at levels consistent with a pickup in wage growth over the mediumterm,” said Jeremy Schwartz, an analyst at Credit Suisse. “Indeed, this is a key reason to believe recent weakness in average hourly earnings ... may be temporary.”
Job gains have been strong for the past two years but sluggish pay increases remain a weak spot in the economy.