Five Things Everyone Will Be Talking About Today

Ugly, ugly start to the week.

What To Watch: Stocks, China, Oil

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.

Asia stocks 

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.

Europe stocks

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.

Commodity rout

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.

Euro strength

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.

Korea talks

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.

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