Chinese stock markets continued to suffer from high volatility on Tuesday, one day after they sparked a massive global selloff.
The Shanghai Composite was down nearly 2% in afternoon trading, while the Shenzhen Composite shed 3.1%. Stocks had declined sharply to open the trading session, but had bounced back by mid-day before resuming their decline.
Global markets tumbled Monday as worries over China’s economy and instability in the Middle East combined to spook investors. The pain was most acute in China, where trading was halted prematurely after weak manufacturing data sent shares plummeting.
The trading halt was China’s first-ever use of circuit breakers — a kind of emergency brake — on main exchanges.
In Europe, Germany’s Dax dropped 4.5%, while France’s CAC 40 declined 2.5% and London’s FTSE 100 shed 2.4%.
The Dow declined as many as 467 points, but bounced off the lows and ended the day down 276 points. The S&P 500 lost 1.5% and the Nasdaq dropped 2.1%.
– Charles Riley contributed to this report
