25th August 2015
European shares bounced back after the markets opened this morning in spite of another bleak day for Chinese stocks.
Shangha’s maini Composite index closed down 7.6% at 2,964.97, while Tokyo’s Nikkei index was 4% lower.
China’s slowing growth has prompted fears around the globe that it will result in less demand for the goods and raw materials that other countries export.
China is the second-largest economy and the second-largest importer of goods and services.
In the year to June, Shanghai’s main index more than doubled and many commentators believe it has been over-inflated.
Friday and Monday’s plunge in share prices followed weak manufacturing data.
The Chinese government has lowered the value of its currency to help improve demand for Chinese exports.