As jittery investors brace for more shockwaves after last week’s rout on world markets, we look at the impact, from property to petrol prices
This was supposed to be the year when normality returned to the global economic landscape. Growth was looking more established and the legacy of the financial crisis was dimming. The US central bank and the Bank of England looked poised to affirm the recovery by finally starting to raise interest rates after keeping them for years at emergency levels. Even the eurozone, having come close to unravelling once again, by this month appeared to have put the latest Greek crisis behind it.
All that changed on China’s “Black Monday” last week, when the stock market sell-off that had been rumbling along for weeks turned into a rout. A near 9% fall in the main Shanghai Composite index, its biggest one-day drop since 2007, reverberated around global markets, sending other bourses from Sydney to Wall Street tumbling. In London, dramatic moves on the FTSE 100 were reminiscent of the worst days of the last crash.