US markets today – have tumbled like the 2008 crash, amid growing concerns about China’s financial system and the impact of coronavirus on the global economy.
On Wednesday, the Dow Jones index lost almost 800 points to 33,816.92 before regaining ground.
Regulators in China warned it could spark broader risks to the country’s financial system. And investors fear this could hit big banks exposed to Evergrande and companies like it, causing contagion in global markets.
One analyst called it “a classic flight to safety”, with Wall Street seeing its worst day since May. But others likened it to the financial crisis that crippled the world economies in 2008.
But US stocks are still up more than 12% this year and some analysts played down fears of a correction ahead.
Monday’s sell-off was primarily driven by concerns that Evergrande – one of China’s biggest property developers – is struggling to repay around $300bn of debts.
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