Chinese stock market slump sparks global share sell off
China’s main share index, the Shanghai Composite closed down 8.5%, suffering its worst day in 8 years and wiping out year-to-gains amid fears of a hard landing for the Chinese economy. Other Asian markets, including Japan, were also hit hard and European stock markets followed on with the main indexes in London, Frankfurt and Paris all opening around 3% lower than Friday’s close. The commodity and financial sectors, to which TAM client portfolios have little exposure, suffered the brunt of the falls but nearly all stocks were affected. Bonds rose reflecting less likelihood of a mid-September interest rate hike in the US which also dragged the US dollar weaker against the other major currencies.