Stocks sink as Chi­nese yuan weak­ens fur­ther

The China Post - - FRONT PAGE -

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.

US Hir­ing

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.


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