It’s going to be a tough day on the markets as a major selloff is underway, both in Asia and in North America.
The Shanghai index in China kicked things off overnight with a drop of 8.5%, followed by big drops in Hong Kong and Tokyo.
In New York, the Dow opened at 6:30 a.m. down over 1000 points and the TSX in Toronto dropped more than 750 points.
However, CKNW business analyst Robert Levy says investors should not panic.
“You’ve got to take a step back here and you’ve got to see where the dust is going to settle and which way they’re going to head because markets don’t continue to fall, they shouldn’t continue to fall, historically we don’t see them fall day after day. And certainly today now the Dow is starting to settle – it’s only down about 600 points relative to the 1000 drop at the open.”
He says all this is due to concerns over the Chinese economy, the second largest in the world, is slowing and their demand for commodities is falling.