Asian markets suffered major losses on Monday, extending a sell off that has touched nearly every corner of the globe.
The benchmark Shanghai Composite opened dramatically lower, shedding 8.5% in early trading and wiping out all gains made this year. Many companies listed in Shanghai, including some large state-owned firms, fell by the maximum daily limit of 10% within the first hour of trading.
The smaller Shenzhen Composite also declined more than 7.5%.
In Japan, the Nikkei was 3.2% lower in early trading, and Australia's ASX All Ordinaries was down 3.6%. Seoul's KOSPI Composite lost 2.5%. Asian currencies were trading lower against the U.S. dollar.
Three factors continue to weigh on markets:
1. Concerns that China's economy is slowing faster than analysts had anticipated.
2. Uncertainty over when the U.S. Federal Reserve will raise its benchmark interest rate.
3. The effect of exceedingly cheap oil -- crude is now trading near $40, its lowest point in more than six years.
If Dow does open 400 points lower Monday, that will be the lowest since Feb 2014.
18 months gone in two weeks. Futures -506 as I go to bed.
Guess no need for the Fed to raise interest rates in September.
