At the Wall Street Journal, "Global Stocks Fall Sharply Amid Concerns About the Chinese Economy":
The rout in financial markets intensified Monday, as global stocks and commodities extended last week’s steep declines.Keep reading.
European stocks and U.S. stock futures dived after a sharp selloff in Chinese shares accelerated, wiping out gains for the year. Oil prices continued to drop, while Treasurys gained as investors sought the relative safety of government bonds.
Fears that China’s economy is slowing dramatically have sparked heavy selling around the globe in recent days. Beijing’s unexpected move to devalue its currency two weeks ago raised the alarm that the world’s second-largest economy may be in worse shape than many had thought. Since then, weak economic data have fueled worries that a drop-off in Chinese growth could cause a global slowdown.
The Shanghai Composite sank 8.5%, entering negative territory for 2015, having risen as much as 60% to its June peak. Japan’s Nikkei benchmark tumbled 4.6%.
Investors were further rattled Monday by the lack of fresh steps to stem the selloff over the weekend from Chinese authorities. The Wall Street Journal reported that the central bank was preparing to flood the banking system with liquidity to increase lending, the latest in a series of measures designed to give the flagging economy a boost.
Futures indicated opening declines of more than 3% for the Dow Jones Industrial Average and the S&P 500. The Dow entered a correction on Friday, falling 10% from its recent peak, following its worst week since 2011. Changes in futures aren’t necessarily reflected in market moves after the opening bell.
The Dow, the S&P 500 and the Nasdaq Composite Index all posted their worst one-day percentage declines since 2011 on Friday.
And here's the report from last Friday, "China’s Devaluation of Yuan Jolts Global Markets: Greece and Its Creditors Agree Terms for a Third Bailout, But Some Details Remain Unresolved."
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