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Hong Kong benchmark heads for correction as China shares tumble

11 February 2018

Markets followed USA stocks lower after the Dow, coming off a record high, entered a "correction" - that is, a 10 percent decline from its latest peak - for the first time in two years.

Sign up today for a free 30 day free trial of unlimited digital access. China Unicom has a 52 week low of $11.93 and a 52 week high of $16.55. FMR LLC now owns 4,127,672 shares of the Wireless communications provider's stock worth $61,750,000 after purchasing an additional 691,500 shares in the last quarter. The Nasdaq composite added 97.33 points, or 1.4 percent, to 6,874.49. The Dow Jones industrial average slumped 600 points.

Stocks started to fall in early trading and extended their losses throughout the morning.

Analysts have also been saying the market has gotten much too expensive after a huge run-up over the a year ago and has been long overdue for a pullback. The Dow gained 330.44 points, or 1.4 percent, to 24,190.90.

The Standard & Poor's 500 index, the benchmark for many index funds, also wavered between gains and losses.

The S&P 500 is down 9.3 percent from the record high it set January 26.

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The benchmark Shanghai Composite Index tumbled 4.0 percent and the blue-chip CSI300 ended the day down 4.3 percent.

The losses in Asian markets Friday capped a brutal week. The stock recovered 15.34% since its low point and has performed 1.7% year-to-date.

"There are a lot of risks ahead and we've been lulled into a false sense of security over the last couple of years with central banks keeping rates low for a very long time", Steve Goldman, Kapstream Capital head and portfolio manager, told Bloomberg TV."Risk assets are going to continue to perform well albeit with a lot more volatility than what we've seen in the past". All three had dropped around 2 percent the day before.

As of Thursday, some $2.49 trillion in value had vanished from the index since its most recent peak on January 26, according to S&P Dow Jones Indices.

The S&P 500 gave up 44 points, or 1.7 percent, to 2,637.

In Toronto, the S&P/TSX composite index was down 31.08 points or 0.21 per cent to 15,034.53, after losing almost 280 points and gaining more than 45 points throughout the day.

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Stocks are sliding further on Wall Street, putting the market on track for its second big weekly drop in a row.

The market didn't get much help Thursday from company earnings reports, several of which disappointed investors. GrubHub jumped $21.44, or 30.7 percent, to $91.34, while Yum Brands dipped $1.22, or 1.5 percent, to $78.91.

The losses, which began last Friday, put the benchmark Standard & Poor's 500 index nearly 8 percent below the record high it set two weeks ago.

The Hang Seng finished modestly higher on Thursday following gains from the casinos, weakness from the oil companies and mixed performances from the properties and insurance stocks.

Government data published Thursday showed imports surged 37% from a year earlier.

Hanesbrands sank 8.8 percent after its results came up short of analysts' foreacasts. Wall Street is only getting more bullish on the stock, with 3 of analysts who cover CHS having a buy-equivalent rating. The price of the most-traded China 10-year treasury futures for March delivery was basically flat.

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Hong Kong benchmark heads for correction as China shares tumble