IT BEGAN innocently enough, with a fall in markets in China that might, at the outset at least, have been mistaken for the healthy clearing of froth from the world's frothiest stockmarket. Yet the plunge that started in Asia (and which followed on a nasty drop in American markets on Friday) has continued to gather momentum. It now looks like something quite worrying indeed. When markets in Shanghai closed, stocks were down 8.5% on Monday—the Shanghai Composite’s worst single-day fall in eight years and, given the daily limits on how far individual stocks can fall, very nearly the biggest possible decline. The People's Daily, the Communist party's mouthpiece, declared the day "Black Monday". The nervousness has radiated outward from China. The Nikkei index in Japan slipped 4.6%. European bourses are down 4-5%. The Dow opened down more than 1,000 points; stocks have since regained some ground but the main indexes are still down about 4%. The Eurofirst 300 index has had its worst day since 2009. Germany’s DAX has now lost all the gains it made in 2015.
The pain extends beyond stockmarkets. Emerging-market currencies from the...Continue reading
Source :Business and finance http://ift.tt/1Nwgc6r
0 commentaires:
Enregistrer un commentaire