What Is #BlackMonday ( A Blogger’s Explanation)





If you are not a business person, you might feel confused seeing the #BlackMonday on your Timeline, because the issue is currently trending world wide on social media.

According to reports, World Stock markets plunged on Monday, as a near 9-percent dive in China Shares and a sharp drop in dollar and major commodities sent investors rushing for the exit.

The Dow Jones dropped more than 1,000 points as Wall street opened and the benchmark standard & Poor's 500 index slid more than 2.5 percent, a drop that puts it nearly 10 percent below it's record high

 Yeah the figures might sound confusing, since am not a stock broker myself, but this is what i know about #BlackMonday. see explanation after the cut.


Also see our twitter live feed, for updates of reactions around the world.








Another Great Recession or just a bad trade day?
See updates Below





China is the world's second-largest economy and world largest market in my opinion, due to it's population and as a result a lot of international business  invest in the Chinese market, which is socialist in nature (largely controlled by the government),

So China on August 11 devalued it's currency called the Yuen.

Devaluation means that a country reduces the value of it's currency as compared to another currency, so when a foreigner who has dollars goes to china, and he buys a product, he buys it at a much lower price due to the fact that the yuen is lower in value as compared to the dollar.Simple

So due to this and other stock markets bouhahaha, investors are having a very bad day due to the Chinese actions because most big investors have investments or do business with the Chinese.

Seriously who doesn't?

So the #BlackMonday means that  the prices of stocks/shares all over the world have fallen and the last prices fell like this was in 2008 and it was called the Great Recession and it started in the U.S.

The News


Chinese stocks were absolutely hammered overnight on Monday,tanking 8.5% in what observers are calling the Shanghai Composite's "Black Monday". 
The chaos — which has been bubbling away in Chinese markets for months — has spread to global markets, with European stock exchanges swallowing steep losses this morning.
and analyst had this to say;

DEUTSCHE BANK

Analysts: Nick Lawson
"Chinese shares, having broken the July lows, look like they are completing a full three-wave bubble unwind. Historically an initial crash bounce is followed by a retest and take out of the lows. This is now being experienced, despite the best efforts of the authorities.

"When assets have been mis-allocated, the unwind is almost impossible to stop unless you are compounding the issue (for the future) with even greater excesses. Since the PBOC widened the float, global growth concerns have trumped the expectation of yet more intervention, though that expectation will be rising by the minute."



Updates

 After the initial plummets this morning, it looks like most stocks have corrected. As of 1:26 EST, the tickers for Apple, Netflix and Intel returned to positive figures. Other major tech stocks moved closer to the start of trading. Apple’s quick swing may have come from comments by CEO Tim Cook, who told CNBC the company is seeing “strong growth” in China.


At the close of yesterday in New york, the Dow jones plummeted more than 1,000 points before ending the day down 588point, or 3.6percent , in it's eight -worst point decline ever.
The standard & Poor's 500 sank 3.9 percent, putting it in correction meaning it had fallen at least 10 percent from a recent peak.
In Europe, Germany's DAX index declined 4.7 percent, France CAC-40 slid 5.4 percent and Britain's FTSE 100 lost 4.7 percent.

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