Global stocks sink as Chinese currency weakens further

New York (AP) — A second day of declines in China's currency is sending global stocks lower as traders worry about weakness in the world's second-largest economy.

The Dow Jones industrial average lost 227 points, or 1.3 percent, to 17,175 as of 11:45 a.m. Eastern time Wednesday.

The Standard & Poor's 500 index fell 25 points, or 1.2 percent, to 2,058. The Nasdaq composite declined 67 points, or 1.4 percent, to 4,968.

Markets were also lower in Europe and Asia. A weaker Chinese currency would make that country's exports cheaper on global markets.

U.S.-listed shares of Alibaba, the giant Chinese retailer, sank 6 percent after the company's sales fell short of analysts' estimates.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.08 percent.

By Matthew Craft, AP Business Writer. Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

The Gayly – August 12, 2015 @ 11:10am.