Problems with the Chinese economy are causing financial problems around the world. Ryan Gaumont reports that weak service sector data from China have caused a series of problems, including a big drop in oil prices. Wednesday was a bad day for the stock market as well. The Dow Jones Industrial Average fell 251 points, the S&P 500 dropped 26 points, and the NASDAQ Composite fell 55 points.
Crude oil prices were down to their lowest point in a decade. Brent crude, the international oil price benchmark, dropped 6.01% to $34.23 per barrel, its lowest level since June of 2004. Tensions between Saudi Arabia and Iran merely exacerbate the problem.
China’s financial condition has been affecting the global economy all week, beginning with a drop in stock prices on Monday (see the SMFN report January 5, 2016). Turbulence in the Chinese stock market has forced officials to halt trading. There is presently no indication that things will soon improve.
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