Plummeting Chinese stocks send negative waves across European and US markets

Monday's huge fall in Chinese stocks has sent ripples of uncertainty across western markets. 

 

 

The Shanghai Composite Index fell by 8.5 per cent in early trading, while the CSI300 index of the largest listed companies in Shanghai and Shenzhen plummeted 8.6 percent, to 3,818.73 points.

 

In Europe, the FTSE 100 dipped 1.13 per cent, closing at 6,505.13p. Germany's Dax index went down 2.56 per cent to 11,056.40, while France's CAC 40 closed 2.57 per cent lower at 4,927.60.

 

US stocks also suffered at the hand of China's turmoil, with the S&P 500 falling 0.6 per cent to  2,067.66 and the Dow Jones Industrial average going down 0.7 per cent to 17,440.59.

 

The worst performing US sector was the S&P materials index, which ended the day 3.3 per cent lower. 

 

The plummet in China was the country's biggest market decline since February 2007. It followed the release of a series of negative economic datasets about the world's second largest economy, including a 0.3 per cent fall in industrial profits during the year to June. 

 

On Friday, a survey revealed how in July Chinese manufacturing contracted by the largest degree in over a year.