The opening of the US stock market a few hours ago, followed the lead set by Asian markets. Chinese shares tumbled overnight and US and European shares have followed suit. They are calling this day Black Monday already.
Currencies of basic resource-producing countries led the declines, with the ruble tumbling 2.5 percent and Malaysia’s ringgit sliding 1.8 percent to a fresh 17-year low and with South Africa’s Rand dropping 2.1 percent to hit an all-time low against the Pound.
The GBP-NZD is currently around 2.415 after being 2.368 earlier this morning. The Aussie Dollar has also weakened throughout the day from 2.155 to 2.184. Currently the EUR-USD is around 1.159 and the US dollar is fast losing ground.
The global economy’s reliance on the Chinese market is now becoming more and more apparent, the slowdown in the world’s second-largest economy is deepening and investors around the globe are very nervous.