3:10 PM New York City, New York – World markets were under pressure after China devalued yuan by 2% sparking worries about the health of the second largest economy. Google said it will restructure its operations as the company expands into many unrelated areas.
Stocks around the world were under pressure after China devalued yuan by 2% ahead of presidential summit and sparking fears that the second largest economy in the world may be weaker than expected.
In addition, the latest productivity report in the U.S. suggested that the benefits of technological development is waning.
Preliminary nonfarm business sector labor productivity rose at 1.3% annual rate during the second-quarter from a year ago period, the Department of Labor said.
Productivity declined at 1.1% rate in the first quarter and 2.2% in the final quarter of 2014.
Inventories in June increased 0.9% to $586.2 billion from the revised May data and climbed 5.4% from a year ago month.
In June, wholesale sales rose 0.1% to $449.9 billion from the revised May sales but dropped 3.8% from a year ago month, the Department of Commerce reported.
On Wall Street, Tollbooth Strategy Index slipped 68.27 or 0.6% to 10,770.19.
S&P 500 index slumped 24.21 or 1.2% to 2,080.02 and the Nasdaq Composite Index dropped 69.93 or 1.4% to 5,031.85.
Crude oil in New York declined $1.75 to $43.21 a barrel and gold rose $3 to $1,107.10 an ounce.
) plunged 29.6% or $13.28 to $32.04 after the wealth management software provider said total revenues in the second-quarter ending in climbed 21.1% to $102.7 million from a year ago period.
Net income in the quarter plunged 32.4% to $2.5 million or 7 cents per diluted share compared to $3.7 million or 10 cents from the same quarter last year.
Separately, the company agreed to acquire cloud-based digital financial services provider Yodlee in a cash and stock transaction for $18.88 a share or about $660 million.
The transaction is expected to close in the fourth-quarter of this year or in the first-quarter of 2016.
In London trading, FTSE 100 index slumped 68.50 or 1% to 6,712.83 and in Frankfurt the DAX index declined 294.40 or 2.6% to 11,307.76.
In Paris, CAC 40 index dropped 77.81 or 1.5% to 5,116.41.
slumped 4.3% to 78.75 Swiss francs after the Switzerland-based outsource services provider said revenues in the first-half ending in June soared 11% to €10.67 billion from €9.64 billion in a year ago period.
Net profit in the period surged 32% to from a year ago to €337 million compared to €255 million and diluted earnings per share jumped to €1.94 from €1.43.
surged 17.9% to €33.04 after the Finland-based lifting equipment maker and the U.S.-based diversified company Terex Corporation agreed to merge Konecranes Terex Plc
Terex shareholders will own approx 60% and Konecranes shareholders will hold 40% of the combined company and Terex shareholders will receive 0.80 Konecranes shares.
The combined company is planned to list in Helsinki and New York and the transaction is expected to close in the first-half of 2016.
Stocks in Japan closed lower after China devalued yuan by 2% to support economic growth and manufacturing exports.
Dentsu Inc said quarterly revenues increased 15% and net soared 75%. Nitto Denko, the industrial polymers maker estimated annual sales to rise 5.4%.
Nikkei average in Tokyo closed down after the surprise devaluation by China dented market sentiment in Japan and across the globe.
The Nikkei 225 Stock Average slipped 87.94 or 0.4% to 20,720.75 and the broader Topix index slid 3.69 to 1,687.60.
The yen eased to 124.93 against a dollar.
Sumitomo Life Insurance Co
, the life insurer is in acquisition talks with the U.S.-based rival Symetra Financial Corporation for about 400 billion yen to 500 billion yen or about $3.2 billion to $4 billion.
Sumitomo Metal Mining Co., Ltd
jumped 3.9% to 1,667 yen after the geological survey and civil engineering group forecasted revenues in the first-half unchanged at 465 billion yen from earlier forecast but net income to decline 19% to 45 billion yen from earlier guidance of 46 billion yen.
Stocks in Mumbai traded lower and banks led the decliners after State Bank of India reported widening loan loss ratio.
The largest bank in India said gross loan loss ratio increased marginally to 4.29% from 4.25% in the prior quarter and new bad loans increased to ₹7,318 crore from ₹4,769 crore in the prior period.
State Bank of India said quarterly profit and revenues jumped 10% and bad loans surged but said outlook is improving.
Rupee weakened 32 paisa to 64.19 against one U.S. dollar.
The Sensex Index dropped 235.63 or 0.8% to close at 27,866.09. The CNX Nifty decreased 63.25 or 0.7% to 8,462.35.