China Continues to Fuel Global Sell Off; U.S. Stocks Poised for another Decline


Published Date : Aug 24, 2015

As worries continue to eat about China’s fuel, the U.S. stock futures are declining sharply on Monday morning. According to Nasdaq, the futures are sharply declining 5%, with S&P futures and Dow both around 3% lower. Given below are the five things the user needs to learn before the opening bell rings in New York. 

China is facing more losses, no intervention. The Shanghai Composite closed at 8.5% wiping all the gains made so far in 2015. The rates have fallen down to nearly 38% since the peak of June. Shenzhen Composite decreased by 7.7%. All the traders in the market were hoping for the authorities in the region to step in over the weekend in order to support the markets. But no progress on that front, except for disappointments and trader’s angst into anger that decided them to liquidate their positions, added chief market analyst, Naeem Aslam at Ava Capital Markets. 

The stocks market movers such as Netflix suffer, Apple: U.S. stocks to start the week deep in the red. Apple is declining 4% in the premarket trading, while Netflix by 7%. Facebook is trading at about 4% lower. Bank of America also faced looses, sloping 4% down in premarkets and with financial stocks under pressure. 

The oil plunged 3.5% on Monday to just below $39/barrel for the first time since 2009. Natural gas and gold are trading low too. Cheap oil and many other commodities are trading heavily on several emerging markets with Brazil, Russia, and Venezuela among the biggest down fallers. 

The international markets plunge with major European markets opened on Monday. London’s FTSE plunged 3% after entering in the correction territory last week. It weighted toward resource companies and hit by the slowdown in demand from China. 

German’s DAX declined 3% too. Tokyo’s Nikkei ended the session 4.6% down. 

The stock took a dramatic turn on Friday. The Dow Jones Industrial average closed at its worst week since 2011 staggering 531 points and more than 3% on that day alone. The S&P 500 also declined 3% and Nasdaq shed 3.5%.