The domino effect is to be seen following China’s Black Tuesday.
From AP, via The Sydney Morning Herald:
Chinese regulators shifted into damage control, denying rumours of plans for a 20 per cent capital gains tax on stock investments as share prices recovered modestly today following their worst plunge in a decade.
About an hour after trading began, the Shanghai Composite Index was up 1.2 per cent to 2,804.28 after opening down 1.3 per cent.
Yesterday, it tumbled 8.8 per cent, its largest decline since February 18, 1997.
Concerns about slowdowns in the Chinese and US economies sparked Wall Street’s worst drop since the September 11, 2001 terror attacks. [Full Text]
