Trading halted on NYSE due to technical issue
July 08, 2015
Trading halted on New York Stock Exchange due to technical issue.
• Trading halted on New York Stock Exchange due to technical issue. A representative of the exchange said the issue was an internal technical issue and was not the result of a cyberattack. “We chose to suspend trading on NYSE to avoid problems arising from our technical issue,” one tweet from NYSE said. Buying and selling of NYSE-listed stocks was still taking place on electronic venues, including the NYSE’s Arca exchange. The halt came amid a broad selloff in shares that was spurred by a deepening decline in China’s stock market. It’s unclear what caused the disruption, but trading has resumed. [WSJ]
• Senators pitched a bipartisan plan to change taxes on overseas profits to fund highways. The proposal by two senators plans to overhaul U.S. taxes on multinational corporations and use potential revenue as a source of funding for highways and infrastructure. Lawmakers broadly acknowledge the need to shore up the depleted Highway Trust Fund, which is projected to dry up in coming weeks and must be reauthorized by July 31. But Congress has struggled for years over how to pay for the influx of funds needed to maintain and repair federal highways, bridges, and mass transit. The proposal from Sen. Charles Schumer (D., N.Y.) and Sen. Rob Portman (R, Ohio) would impose a one-time tax on profits that multinationals have stashed overseas at a rate lower than the current 35% U.S. corporate tax rate. By now, some $2 trillion in such “stranded” profits has built up offshore. If the effort fails, lawmakers will likely fall back on a patchwork approach to fund the highway program for the next six months to two years. [WSJ]
Economic Indicators & News
• FOMC minutes from the mid-June policy meeting were made available this afternoon and can be viewed here. Several members favored immediate rate hikes, as opposed to waiting until the end of the calendar, but nearly all voting members wanted to see see greater upward pressure on inflation first.
• The Chinese government struggled in vain to stem distress in the country’s stock market. Chinese officials rushed out more emergency measures to halt what is turning into a crisis of confidence in its leaders’ ability to steer the economy. Before the day was over, the equities selloff had spilled into offshore trading in the Chinese yuan and worsened a drop in global commodity prices. China’s securities regulator said that controlling shareholders and executives who own more than 5% of a company’s stock aren’t allowed to sell their holdings for the next six months. Any violation of the rule would be “treated seriously.” China’s central bank extended funds for loans to buy shares and the agency that oversees China’s oil giants has forbidden them from selling their shareholdings. Meanwhile, the benchmark Shanghai Composite Index ended Wednesday 5.9% lower, after falling as much as 8.2% early in the session. [WSJ]