Date
28 July 2017
Equity markets across the world have come under fresh selling pressure amid worries about slowing global growth. Photo: Bloomberg
Equity markets across the world have come under fresh selling pressure amid worries about slowing global growth. Photo: Bloomberg

China worries prompt fresh selloff in global stock markets

US stocks suffered a major selloff on Thursday, causing the key indexes to post their biggest slide of 2015, amid fresh concerns over China’s economic slowdown and its impact on global growth.

The Dow Jones industrial average tumbled 358.04 points, or 2.06 percent, to 16,990.69, while the S&P 500 index lost 2.11 percent to 2,035.73, putting it back in negative territory for the year.

The Nasdaq Composite index dropped 2.82 percent to 4,877.49, its biggest daily percentage drop since April 10 last year.

Commodity plays came under fresh pressure on worries about weak Chinese demand. Crude oil prices were hovering near six-and-a-half year lows. 

“The largest issue is certainly the fact that we don’t know how much the Chinese economy is slowing,” Reuters quoted Art Hogan, chief market strategist at Wunderlich Securities in New York, as saying.

China’s stock markets fell sharply on Thursday, with key indexes in Shanghai and Shenzhen down more than 3 percent, as investors were worried that a weak currency and slowing economy may spur further capital outflows.

Fresh jitters and about Chinese markets and the economy caused investors in Europe and the US to unwind positions. 

The equities selloff also came in the wake of minutes from the July Federal Reserve meeting, which cooled expectations that the US central bank will start raising interest rates as early as September.

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RC

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