Asia market rout, Europe stocks a sea of red, commodities give up millennium-to-date gains. Here's what people in markets are talking about today.
In China, the Shanghai Composite Index plunged 8.5 percent, the most since 2007, to close at 3,209.91. The index has now erased all of its 2015 gains. Meanwhile, a gauge of stock-market momentum in Hong Kong is showing the most extreme selling since the Black Monday crash of 1987. Echoes of crises past are strong at the moment, with some seeing similarities between current conditions and the start of the 1990s Asian meltdown.
The sell-off in Asia has moved to the European open, with last week's rout intensifying this morning. The German DAX index fell 3 percent, down 21 percent from its peak, putting the benchmark gauge into bear market territory. All but two shares listed on the Stoxx Europe 600 Index were lower at 10 a.m. London time.
The Bloomberg Commodity Index of 22 raw materials sank to its lowest level since August 1999 as Brent crude fell below $45 for the first time since 2009. Commodity producers' stocks are being hit particularly hard with Glencore falling as much as 7.6 percent to a record low of 146.45 pence in London.
The euro currency hit its highest level against the dollar since February earlier when it briefly touched $1.15. Expectations for a rate rise by the Fed at its September meeting have now dropped to 28 percent, down from 54 percent in the days before China's devaluation of the yuan. The Russian ruble and South African rand are the two worst performers against the dollar.
Marathon talks aimed at reducing tensions in the Korean peninsula continued, but with little sign of progress. North Korea's build-up of military hardware at the border is increasing and it has dispatched more than two-thirds of its submarines from ports. The South Korean won had it weakest close in five years amid the continued military stand-off.
What we've been reading
This is what's caught our eye over the last 24 hours.
- Can IEX group displace the NYSE and Nasdaq?
- Putin's political mischief in western Europe.
- The Fed dollar and the Wall Street dollar are not the same.
- We're about to find out how vulnerable the German economy is to China's slowdown.
- The stock market rout was inevitable, and will only get worse.
- U.K. property: still a bubble.
- Questioning China's weirdly stable unemployment rate.
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