China’s biggest stock market crash in 8 years halts gold fall
Duncan Richardson, News Editor
28 Jul 2015, 11:18 a.m.
China’s stockmarket is in freefall, after falling over 8% on Monday China’s largest stock market fell a further 4% overnight as concerns grow the Chinese economy is stalling.
On Monday’s Shanghai Composite fell 8.5% to 3,725.56 points. The fall rattled markets in Europe with the FTSE 100 falling over 1% and the main share indexes in France and Germany dropping more than 2%. Over the last 2 months the Chinese stock market has fallen over 32%.
Overnight the Chinese regulator confirmed the government would continue to buy shares to help stabilise the market. The Peoples Bank of China (PBOC) also utilised reverse-purchase agreements to inject a further $8 billion into the countries bank. The PBOC said it will continue to use a variety of monetary tools to maintain liquidity in the market.
Gold prices responded as traders looked for safe havens. In U.S. dollars gold rose $5.90 to $1,091.00 per ounce and silver closed up $0.067 to $14.55 per ounce.