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Global Stocks and Commodities Dropping Like Stones

Global Stocks and Commodities Dropping Like Stones

Just in the last 48 hours, there has been nothing short of financial carnage across the globe. The following is just a summary:

  • Sunday night saw the Shanghai Composite Index (SHCOMP) drop 8.5%, its largest crash since 2007 and the 2nd largest in history. The Chinese government has said it now has no choice but to intervene fully.
  • Over 1,500 Chinese stocks dropped by their daily maximum of 10%, eg. China Unicom, Bank of Communications, PetroChina.
  • The SHCOMP has seen 28% wiped of share values since the June peak.
  • Chinese stocks that are listed on U.S. exchanges were also hit – “144 China-based stocks… have erased nearly $40 billion in paper wealth since… June 12.” – USA Today
  • This resulted in significantly lower share values across Europe.
  • The currencies of Brazil, Mexico, South Africa and Turkey are all at multi-year lows, with investors escaping these and other emerging markets, and commodities prices nose-diving.
  • Puerto Rico has announced it cannot pay its August 1 debt payment of $169 million, with Obama saying he is not planning on a bailout for the islanders.
  • Monday saw the Dow Jones drop 127 points, the 5th day in a row both it and the S&P 500 have dropped. The Dow has now dropped more than 650 points since July 20.
  • On the NYSE, 480 stocks hit new 52-week lows.
  • The Bloomberg Commodities Index continues to spiral downwards, dropping 1.22% on Monday.
  • U.S. oil is down to $46.92 a barrel, down nearly 20% just this month.

These are typical of the events, only worse, that occurred before the last economic crisis. If you are concerned, taking all of the above into account, about the direction the U.S. economy is truly headed, please Like & Share this post.

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