China’s stock market woes continue
Peter Walden, News Editor
25 Aug 2015, 4:27 p.m.
Chinese shares have plunged for the second straight day after concerns over China’s slowing economy triggered yet another market sell off.
After falling 8.5% on Monday, China’s main stock market index fell a further 7.6% overnight. Mondays fall has now been dubbed China’s “Black Monday.”
After decades of continuous economic growth, China’s economy is now slowing and investors are concerned firms and economies which rely on China will be adversely affected. Prior to the crash Chinese stocks rose sharply fuelled by first time investors buying shares on margin.
The stock market has been falling for months despite the Chinese government using hundreds of billions of dollars of state money to protect the market.
U.S. shares also fell heavily with the Dow plunging over 1,000 points within minutes before recovering. The Dow Jones Industrial finished the day down 588.40 points or 3.6%
Amongst the carnage gold remained broadly unchanged, however, silver, platinum and palladium suffered significant losses.