U.S. stock index futures screamed lower on Monday, with Dow futures tumbling 500 points, as fears surrounding the health of China’s economy multiplied.
These concerns saw the benchmark Shanghai Composite index notch up its biggest one-day percentage loss since 2007 on Monday, closing down 8.5 percent.
Panic spread to European markets, with the pan-European FTSEurofirst 300 as much as 3 percent in early London trading. All major bourses were off a similar amount. The index has shed over $1 trillion in market value in August so far.
Japan’s Nikkei 225 index also finished at its lowest closing level since February 23, as a double whammy of China-related fears and a rejuvenated yen brought the bourse down by its biggest one-day drop in more than 2 years.
The major falls come after U.S. stocks closed deep in the red on Friday, pushing the Dow and Nasdaq into correction territory.The major averages had their biggest trade volume day of the year and posted their worst week in four years.
Oil prices crashed to fresh six and half year lows on Monday, after Chinese stock markets suffered, intensifying worries over the outlook for global oil demand.
Brent oil was trading down 4.6 percent, at $43.36 a barrel. U.S. October crude was down 4.1 percent at $38.80 a barrel.