U.S. stocks opened sharply lower for the second straight day on Thursday after China allowed the yuan to decline further and oil prices slumped to near 12-year lows, raising concerns over the state of the global economy. Rough Cut (no reporter narration).
ROUGH CUT (NO REPORTER NARRATION) STORY: U.S. stocks opened sharply lower for the second straight day on Thursday after China allowed the yuan to decline further and oil prices slumped to near 12-year lows, raising concerns over the state of the global economy. The Dow Jones industrial average <.DJI> fell 189.94 points, or 1.12 percent, to 16,716.57, the S&P 500 <.SPX> lost 21.6 points, or 1.09 percent, to 1,968.66 and the Nasdaq Composite index <.IXIC> dropped 103.30 points, or 2.14 percent, to 4,732.46. STORY: Wall Street opens sharply lower for a second straight day after China allowed the yuan to fall further and oil prices slid to near 12-year lows, raising concerns over the state of the global economy. China allowed the biggest fall in the yuan in five months, and Shanghai stocks were halted for the second time this week after another brutal selloff. With Beijing accelerating the yuan's depreciation to make its exports more competitive, investors fear China's economy is even weaker than had been imagined. Adding to the gloom, oil slid below $33 a barrel to near 12-year lows due to worries over weaker demand from China and an over-supplied market. [O/R] Billionaire investor George Soros, speaking at an economic forum in Sri Lanka, drew similarities between the present environment and the financial crash of 2008, Bloomberg reported. He said global markets are facing a crisis and investors need to be very cautious. The World Bank also cut its global economic growth forecast for 2016, saying the weak performance of major emerging market economies will tamp activity overall, as will anemic showings from developed countries such as the United States. The August free-fall, which saw the Dow lose 1,000 points at one point in intraday trading, was triggered by the same factors - weakening of the yuan and a sharp slide in oil prices.