Written by Staff Writer
05 Jan, 2016 | 6:06 am
Wall Street has continued the rout on global share markets, with the Dow Jones, S&P 500 closing down more than 1.5% and Nasdaq down 2%.
It followed sharp falls in China, where trading on the main stock markets was halted early after indexes tumbled 7%.
A survey indicating China’s manufacturing sector contracted again last month was blamed for the falls.
Other Asian markets also fell, while in Europe, the FTSE 100 closed down 2.6% and Germany’s Dax index dropped 4.3%.
Meanwhile, news that Saudi Arabia had broken off diplomatic ties with Iran sent oil and gold prices higher.
On Wall Street, all 10 major S&P sectors were lower, led by the 2.4% fall in the technology sector. Bank stocks were also hard hit, with JP Morgan down 3.65%.
Earlier on Monday, trading on China’s Shanghai and Shenzhen stock exchanges was halted for the first time under new “circuit breaker” rules, which are designed to curb market volatility.
The share price falls came after more signs of trouble in the world’s second-largest economy.
Some analysts also attributed the decline in share prices to the imminent end of a six-month lockup period on share sales by major institutional investors, a policy implemented to shore up indexes. Big shareholders may start dumping shares once the ban is lifted on Friday.
Monday’s sell-off in China had a knock-on across the region. Japan’s Nikkei 225 tumbled 3.1% and Hong Kong’s Hang Seng retreated 2.6%.
08 Dec, 2021 | 06:36 PM
07 Dec, 2021 | 04:44 AM
Are you interested in advertising on our website or video channel
Please contact us at [email protected]