International stock markets saw a sharp falls in trading on Monday.
Monday the 24th of August, 2015 has been the worst day for European markets since 2008 with the FTSE shedding 74 billion pounds and the Dow Jones falling 1,000 points.
The world’s second most profitable listed company, Apple saw its share price fall 13% before regaining ground.
Many attribute this slump to the weakness of the Chinese stock market. There are those who point to a blip caused by the summer season, which sees many risk takers on vacation.
Analysts do not appear particularly alarmed and point to investors not cut and running en masse.
Chief Investment Officer at Albion Financial Group, Jason Ware said: “ We are unlikely to be going into a bear market. There are a number of positive things happening under the surface of all the chaos and it is easy to forget those things when you see those types of moves.”
European country heads are not unduly perturbed by the situation in China
The German Chancellor Angela Merkel speaking on the German stock exchange, the Dax entering into a bear market said: “ China will do everything it can to stabalise the economic situation. The IMF sees the sell-off in China as an “ adjustment”, not a “crisis.”
President Hollande of France said: “ China will find responses within itself and the world economy is sufficiently solid to have growth perspectives that are not solely linked to the situation in China.”
Also causing concern is the sharp drop in commodities. Today,Brent oil hit a six-year low of US$42.51 a barrel. Copper went as low as US$4,855 a tonne.