Overseas Trading: China Sell-Off Sends Global Stocks Reeling

Global markets are broadly lower today, with trading in China halted after a massive intraday drop for the Shanghai Composite

Jan 4, 2016 at 8:20 AM

Stocks in Asia were hammered today, led by a steep sell-off for China's Shanghai Composite. Traders were rattled after Saudi Arabia severed diplomatic ties with Iran, and a decline in Caixin's December manufacturing purchasing managers index (PMI) accelerated selling pressure. In fact, the mainland index's 7% intraday drop triggered a newly implemented circuit breaker, which halted trading for the remainder of the day. By the close, China's Shanghai Composite lost 6.9%, Japan's Nikkei fell 3.1%, Hong Kong's Hang Seng lost 2.7%, and South Korea's Kospi declined 2.2%.

Markets in Europe are also broadly lower at midday, with traders taking their cues from Asia's dramatic plunge. At midday, the German DAX has dropped 3.8%, France's CAC 40 has fallen 2.7%, and London's FTSE 100 is 2.4% lower.

Overseas markets 0104

Follow @Schaeffers

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released!