China’s stock exchanges endured “Black Monday” today, setting off a series of mini-crashes all over the globe, and ultimately leaving both the U.S.’s Standard & Poor 500 (down 3.92%) and Nasdaq (3.8%) indexes in correction territory. Losing 8.5% in one day’s trading, the Chinese markets suffered their biggest drop since 2007, ending 38% down on the June peak figure, and wiping off any profit investors had gained year-to-date. The resulting wave of fear that then spread westward during the day wiped out hundreds of billions of dollars from markets across Asia, Europe and, finally, the U.S. The Dow Jones finally ended the day down 3.57%, the least damaged of the U.S. markets; however, it was the worst day’s trading for all 3 since 2011.
It was not only stocks that suffered an adverse reaction to news from China. The Bloomberg Commodities Index is now at a 16-year low, with oil prices dropping a full 6%. Many analysts are now agreeing it is the combination of the Chinese crash coupled with the end of stimulus measures by central banks that have resulted in what was seen across the world’s stock markets today, as investors are left wondering that this is a new and worrying continuation of the crisis that started 8 years ago.
If you believe that the markets suffered today not just because of the situation in China, but through this government’s fiscal inaction, please Like & Share this post.
