Global stocks slump on China woes

Major US, European and Asian stock markets slumped and commodity prices hit new lows Monday as a Chinese-led rout spread globally, fed by fears of a damaging slowdown in the world's second-largest economy, reports AFP from London.
In Europe, Frankfurt's blue-chip DAX 30 index hit an intraday low of 9,593.40 points in early afternoon trading, a drop of 5.25 percent from the previous closing level on Friday.
The CAC 40 in Paris sank briefly more than 5.0 percent before settling at a loss of 4.80 percent, while London's benchmark FTSE 100 index of leading companies fell 4.47 percent.
In the US, Wall Street's Dow Jones was down more than 4% after the first half-hour of trading, having earlier fallen 6%. The sell-off hit stocks across almost every sector in New York. The Dow Jones at one point fell below 16,000 for the first time since February 2014, while the technology-heavy Nasdaq index was more than 4% lower in morning trade, recovering a bit after having plunged 8%.
China-linked shares again led the stocks sell-off in Asia, with Shanghai closing down 8.49 percent, the biggest daily loss since February 27, 2007. In other top Asian markets, Hong Kong’s benchmark fell 5.17 percent, Tokyo 4.61 percent, and Sydney lost 4.09 percent.

“The fog of fear over the state of the Chinese economy is only thickening, and with little in the way of non-Chinese news to come this Monday, the markets are going to struggle to escape today without some fairly ugly scars,” said Connor Campbell, Spreadex financial analyst.
“Things are probably going to get worse before they get better,” Nader Naeimi, head of dynamic asset allocation at AMP Capital Investors in Sydney, told Bloomberg News.
“You really need rate cuts and more policy easing in China. In the meantime, things can get worse.”
Falling oil prices also weighed on market sentiment as they slid below $40 a barrel for the first time since 2009, after weak Chinese manufacturing data deepened fears that the Asian giant is growing more slowly than thought.
Global equities have lost more than $5 trillion since China’s shock currency devaluation on August 11.
“We’re following the situation in China very closely. However, the concrete fallout for the German economy is likely to be limited,” a government spokesman for Europe’s biggest economy told reporters in Berlin.

Global stocks slump on China woes

Major US, European and Asian stock markets slumped and commodity prices hit new lows Monday as a Chinese-led rout spread globally, fed by fears of a damaging slowdown in the worlds second-largest economy, reports AFP from London. In Europe, Frankfurts blue-chip DAX 30 index hit an intraday low of 9,593.40 points in early afternoon trading, a drop of 5.25 percent from the previous closing level on Friday. The CAC 40 in Paris sank briefly more than 5.0 percent before settling at a loss of 4.80 percent, while Londons benchmark FTSE 100 index of leading companies fell 4.47 percent. In the US, Wall Streets Dow Jones was down more than 4% after the first half-hour of trading, having earlier fallen 6%. The sell-off hit stocks across almost every sector in New York. The Dow Jones at one point fell below 16,000 for the first time since February 2014, while the technology-heavy Nasdaq index was more than 4% lower in morning trade, recovering a bit after having plunged 8%. China-linked shares again led the stocks sell-off in Asia, with Shanghai closing down 8.49 percent, the biggest daily loss since February 27, 2007. In other top Asian markets, Hong Kongs benchmark fell 5.17 percent, Tokyo 4.61 percent, and Sydney lost 4.09 percent. The fog of fear over the state of the Chinese economy is only thickening, and with little in the way of non-Chinese news to come this Monday, the markets are going to struggle to escape today without some fairly ugly scars, said Connor Campbell, Spreadex financial analyst. Things are probably going to get worse before they get better, Nader Naeimi, head of dynamic asset allocation at AMP Capital Investors in Sydney, told Bloomberg News. You really need rate cuts and more policy easing in China. In the meantime, things can get worse. Falling oil prices also weighed on market sentiment as they slid below $40 a barrel for the first time since 2009, after weak Chinese manufacturing data deepened fears that the Asian giant is growing more slowly than thought. Global equities have lost more than $5 trillion since Chinas shock currency devaluation on August 11. Were following the situation in China very closely. However, the concrete fallout for the German economy is likely to be limited, a government spokesman for Europes biggest economy told reporters in Berlin.