The Asian-Pacific Stock Market suffered its worst day in eight years in what experts are calling ‘Black Monday’, with comparisons being made to the stock market crash in 1987. Taiwan has suffered its worst ever day on the stock market as the Chinese market plunged by 8.45%.
European and American markets are expected to take heavy losses as a knock-on effect with the FTSE 100 falling 2.8% at the opening. Australia suffered its worst single day on the market in six years. The mining companies of China are thought to be feeling the losses as copper and oil have fallen victim to the sudden panic selling on the global market.
Just last year Chinese leaders set their country and ambitious target of 7% growth at the end of the fiscal year. Originally criticised for overreaching, the target is now almost unreachable even if Beijing do decide to inject the market with cash.
Tara Cunningham of the Daily Telegraph has predicted that around €230 billion has been wiped off the European stock market, spanning 300 companies. The British industry is still expected to reach the 2.6% growth goal even though the European markets will be swaying all day.
The price of gold, one of the metals that is rarely affected by stock crashes, is expected to lower in accordance with the global crisis.
Experts have pointed the finger at the American Federal Reserve as a factor for the stock crash as they remain tight-lipped and uncertain on whether to change their interest rate in September. There have been calls to now freeze the rates until the market has recovered.
Since hitting the 7104 point mark in April, the FTSE 100 market has lost an incredible 15% in just five months. The Hong Kong market shut this morning at a loss of 5.2%, its worst day since March 2014 after falling for seven consecutive days.
The Asian markets have been in free fall all week with cries for the American and European markets to inject much-needed cash back into the global market to try and halt the slide
Crude oil prices have fallen to their lowest point since the global recession began in 2009 with the price of a barrel currently sitting at just $39.33.
Indian leaders, who set the target of reducing the country’s import by 10% from 78%, have seen the crude oil change in price mean that the Indian market will struggle to cut its import dependence at all, with many experts predicting a rise in imports to India after the stock crash.
It will be a challenging week on the global market following this crash, with many expecting the FTSE market to fall even further.