So he called China’s state news agency “Xinhua”, which usually downplays bad news. The main stock index in Shanghai fell 8.5 percent, dragging behind stock prices, currencies and commodities worldwide. Reason for the collapse are concerns about the slowdown in the second largest economy in the world – that of China, which will lead to reduction and global growth.
Only day on Monday shares in the Chinese stock market suffered its biggest one-day drop since 2007, after the measures Beijing mastering the collapse of recent weeks were unsuccessful. The indices of the two major exchanges in China fell by over 8% by deleting accumulated YTD gains. The negative effect is transferred and other major Asian markets in Hong Kong, Tokyo, Seoul and Taiwan. Following the trend of Asia, the main indices of the major stock exchanges in Europe also fell sharply in early trade – the pan-European FTSEurofirst 300 dropped 2.8 percent to 1382.46 points, losing about 230 billion. Euros (264.04 billion. Dollars). Trading in US also began with dips – S & P 500 opened 3.4% down to 1903.41 points, while the decline in the Dow Jones Industrial Average was 3.3% to 15 924.66 points. Nasdaq opened by over 8% in the red, and then decline limit to just over 6%. At 18.00 hours local time on Wall Street trading was halted for 15 minutes.
Concerns about Chinese economy and oversupply in the market continue to push down and oil prices. Only three hours on Monday, Brent crude fell from 45.26 dollars per barrel to 44.62 dollars, reaching its lowest value since the financial crisis in 2009, when the price dropped to 39 dollars.
Depreciation of other raw materials also continued to record low levels. The indicator Bloomberg Commodity Index, which measures the performance in the prices of 22 raw materials fell 1.7 percent to its lowest value in 16 years.
Copper prices, which is considered a barometer of global industrial demand, also dipped. Quotes of the specialized metal LME fell 2.5 percent to a six-year low at values of 4920 dollars per tonne. Nickel fell by 6% to 9570 dollars per ton, which is the lowest price since 2009.