The Chinese markets nosedived overnight..
While China hit occurred, then United States markets prepared for what is being called a ‘meltdown’ on major stations, such as CNBC..
Major reports call this ‘black Monday’ in China, with the Shanghai composite has closing 8.5 percent in the red. Stocks in China are now down 60% since June.
This being reported by BLOOMBERG NEWS:
Worsening economic data and signs of capital outflows are undermining unprecedented government attempts to shore up the country’s $6 trillion stock market. While China said over the weekend it will allow pension funds to buy shares for the first time, a speculated cut in bank reserve ratios failed to materialize.“This is a real disaster and it seems nothing can stop it,” said Chen Gang, Shanghai-based chief investment officer at Heqitongyi Asset Management Co. “If we don’t cut holdings ourselves, the fund faces risk of forced closure. Many newly started private funds suffered that recently. I hope we can survive.”
The European stock markets have continued last week’s negative trend, when 13 out of 18 western European markets lost 10 percent or more, with Germany’s DAX Index down 18 percent. London’s FTSE 100 index suffered its biggest weekly drop in 2015, slumping 5.2 percent.
Commodities are down across the board with Brent oil trading at $44.22 as of 08:20 GMT, which is a six-and-a-half-year low.
The Russian ruble has hit new lows against major currencies, dragged down by both weak oil and Chinese stocks. The Russian currency was trading near 71 rubles against the dollar and 81.40 rubles against the euro as of 08:22 GMT.
The world seemingly is reeling from the news, all this bad economic data. The train wreck may have just begun.
News early this morning: DOW FUTURES have fallen, first reported, 160 points. Then CNBC released this breaking news article minutes later saying that then futures are now down 330 points, with Wall Street prepping for a ‘meltdown’ this week..
This seems to culminate a huge mess of voices who, throughout this year, warned that the dog days of August would also see a runup to a war, and perhaps an economic crisis the likes of which has not been seen since 2008.. OR even worse, since 1929.
The news from China is dismal. The devaluations.. the explosions.. the mess of war talk from Asia, all the while crude oil prices dropping and Walmart losing business show how many things may be held together with duct tape and chicken wire.