But now that there is turmoil in currencies, commodities, and international bond and stock markets, we’ll get to see how leveraged some of these positions have been and how this might affect other types of markets around the world. It’s entirely possible that much of it is interconnected.[/quote]
Stuff like this…how interconnected is it? A short-term blip, or is this a sign that things are about to get really interesting?
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“World stocks and oil prices plunged Monday as a global sell off accelerated on worries about the health of China’s huge economy.
China stocks crashed and all Asian markets suffered major losses. Europe’s major indexes opened about 3% down before trimming those losses slightly.
Oil slumped 3.5% to a new six-year low of just over $39 a barrel.
China’s benchmark Shanghai Composite index declined 8.5%, wiping out all gains made this year. Many companies, including some large state-owned firms, fell by the maximum daily limit of 10%. The index is now down 38% since its June peak.
The smaller Shenzhen Composite lost 7.7%.
Related: China’s stock crash … in 2 minutes
In Japan, the Nikkei closed down 4.6%. Germany’s DAX shed 2.7%, as did the FTSE 100 in London. And Wall Street was poised for another sharp drop on Monday.”
