European and US markets take a nose dive on Monday morning after the collapse of China's market.
US stock markets close after wild ride. After being down 1,000 points, the DOW finished roughly down at 585. S&P is down by 77 points, and the NASDAQ closed down 179 points.
With only half an hour until the US markets close, the DOW is currently down roughly 665 points. The S&P is down approximately 88 points, and the NASDAQ is off by roughly 197 points.
With less than an hour to close, Wall Street is seeing a major sell-off again. The DOW has fallen again, by 650 points.
After falling to 6 ½-year lows, US oil has ended at $38.24 a barrel. That’s a drop of roughly 3.83%, and nearly 18% from the opening price at the beginning of the month.
Brent Crude fell by 4.3% on Monday, at roughly $43.50 a barrel.
Shares of Chinese Internet giant Alibaba Group Holding Ltd. fell 4.7% to $65. This is the first time the company’s stock has ever fallen below its initial public offering price of $68. Alibaba went public in September of 2014.
"The world economy is strong enough to also have prospects for growth which are not simply linked to the situation in China," Hollande told reporters, on the sidelines of a meeting in Berlin with German Chancellor Angela Merkel and Ukraine President Petro Poroshenko.
The Russian stock market indexes closed fall, according to data of the Moscow Exchange. The MICEX index dropped by 1.75% (1634.14 points). The RTS index fell by 4.73% (726.35 points).
The Dow Jones industrial average eased losses after dropping more than 1,000 points. But it was still off more than 1 percent at midday.
Tech giants like Apple, Google, Facebook and Microsoft were hit by Black Monday today. Technology sector leader Apple was down 13%.
Monday's market collapse can hardly be called a crisis, Patrick L. Young, leading market analyst, investment consultant, and author of financial bestseller “The Gathering Storm”, told Sputnik.
The European stocks have closed sharply lower on Monday.
The pan-European Stoxx 600 finished down 5,4%, London's FTSE 100 index ended down 4,4%, German DAX closed down almost 5%, while French CAC slipped over 5,5% and Spain’s IBEX lost 5,7%.
Well that was quite a ride. FTSE 100 closes -4.67% down today. Puts it in the top 24 biggest daily falls since 1984. pic.twitter.com/a705VOSw9N— RBS Economics (@RBS_Economics) August 24, 2015
Republican presidential frontrunner Donald Trump has blamed China for major collapse of markets around the world.
Markets are crashing - all caused by poor planning and allowing China and Asia to dictate the agenda. This could get very messy! Vote Trump.— Donald J. Trump (@realDonaldTrump) August 24, 2015
Soybeans prices hit low since March 2009. China is a major buyer of American soybeans which is why investors are afraid the demand of soybeans may fall following the China's market collapse.
Former US Treasury Secretary Larry Summers has suggested that the US Federal Reserve may ease monetary policy.
It is far from clear that the next Fed move will be a tightening.— Lawrence H. Summers (@LHSummers) 24 августа 2015
As in August 1997, 1998, 2007 and 2008 we could be in the early stage of a very serious situation.— Lawrence H. Summers (@LHSummers) 24 августа 2015
Shanghai stock market lost 9% suffering its biggest fall since 2007.
While hastag #BlackMonday tops Twitter trends, Twitter users are keepeing calm.
New York Stock Exchange may suspend trading if the S&P sinks more than by 7 percent
Hundreds of billions wiped off world’s financial markets today. European markets are facing biggest losses since 2008. Isn't it a repeat of Black Monday of 1987 when stock markets around the world crashed, shedding a huge value in a very short time? Dow Jones has faced a historic 1,000 points fall for the first time in history.
On Friday, world markets concluded their worst week of 2015. The trend has continued this week with Asian and European markets continuing to post major losses.
By midday, Monday, London, France, and Germany were all down more than 4 percent.
US markets lost more than 3 percent on Friday across the Dow, S&P 500, and Nasdaq.
Frankfurt's blue-chip DAX 30 index hit an intraday low of 9,593.40 points in early afternoon trading.
Britain's top share index FTSE fell to its lowest level since 2011.
European stocks were more than 5 percent in the red and Wall Street was braced for similar losses as a near 9 percent dive in China shares and a sharp drop in the dollar.
"There is a snowball effect happening, with margin calls putting pressure on positions and creating forced sellers," said Mark Ward, head of execution trading at Sanlam Securities.
The Paris stock market plunged by over seven percent in mid-afternoon trades with several other European bourses following in its wake.
US markets plunged at the open Monday following a big drop in Chinese stocks. The S&P 500 and Nasdaq composite indexes were poised to slip into correction territory, or 10 percent off their 52-week highs.
The Dow Jones Industrial average dropped 1,000 points at the opening of trading in New York on Monday.
The poor opening on Wall Street followed an 8.4 percent loss on China’s Shanghai Composite Index at the close of trading on Monday. This fall represents the biggest single-day percentage loss since 2007.
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