The 2016 trading year has just begun, and China’s markets dropped quickly on Monday, crashing 7%. Global stocks around the world have suffered as a result, with the S&P 500 falling by over 2% in early morning trading.
Global equities had their worst opening in over three decades, and data from the United States that manufacturing dropped at the fastest level in six years is further causing the global economy to struggle. European equities fell on Monday morning, as Germany announced that the country’s inflation rate has slowed unexpectedly.
European stocks are down drastically on the day, with Germany’s DAX down 4.44%, the FTSE 100 down 2.44% and France’s CAC 40 down 3.74% on the day. The decline will cause further measures by the ECB if China’s economy continues to drag down European stocks.
Asian stocks also struggled on Monday, with Japan’s Nikkei 225 down 3.06%. The Shanghai composite in China closed at a 6.86% loss, while Hong Kong’s Hang Seng fell 2.68% on the day. India’s markets also struggled, with the Mumbai Sensex down 2.05% on the day.
The early crash in the markets are being downplayed by analysts, who expect China’s stimulus measures to work in the long term.