US Stock Market Falls After China Economic Health Concerns

US stock markets fells significantly on Monday due to renewed concerns about the health of the Chinese economy.

The Dow Jones Industrial Average closed down 313 points (1.9%) to 16,002 points, following losses on other markets across the world.

Analysts said anxiety was heightened among investors by official Chinese government statistics showing that the country’s industrial powerhouse companies’ profits plunged 8.8% last month – a much steeper drop than previously thought.

Global stock markets tumbled in August and earlier in September due to concerns of a slowdown in China, the world’s second largest economy. Investors are worried that a slowdown in emerging markets will begin slowing the economy of the US and other western nations. Multinational companies listed in the US and Europe are increasingly reliant on growth in developing nations for future expansion and profits.

Via The Guardian

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza