China’s stock market suffered its biggest one-day sell-off since 2007 on Monday, with share values plunging by more than 8.5 percent.
Panic selling triggered the automatic suspension of trading for over 1,000 companies, leading Chinese financial authorities to announce a new round of share purchases in an attempt to stop the rout. However, Chinese stock indexes continued to fall in early trading on Tuesday.
The plunge in the Chinese market sparked a global run on both stocks and commodities. Share prices in Europe fell by more than 2 percent. In the US, the Dow Jones Industrial Average fell 117 points, or 0.73 percent, while the tech-heavy Nasdaq declined by nearly 1 percent.