World stock markets plummeted with a sharp drop in the US dollar and major commodities, as China failed to mitigate sliding confidence in its domestic stock market on Monday.
China’s economic slowdown and reduction in market value sparked concern amongst traders last week. Several traders and institutions had hoped that China would continue to take measures to dampen the impact that the economic slowdown and drop in Chinese commodity prices would have on the global market, reports Reuters.
The UK Chancellor George Osborne,after a meeting with Finland's finance minister, said,
“Everyone is concerned about the situation on the Asian financial markets. You don't know when the next crisis is coming and from where in the world.”
London’s FTSE 100 closed with its worst run since 2003, losing over $74bn in one day.
At one stage, US authorities temporarily halted trading to limit the volatility of the market.