US, European markets tumble after China rout

Dec 05, 2015 (LBO) – U.S. and European markets tumbled following a seven percent crash of the China stock market after a survey indicated China’s manufacturing contracted for another month.

The Dow Jones index closed down 1.58 percent, S&P fell 1.53 percent and Nasdaq closed down 2.08 percent. The FTSE slumped 2.39 percent, and DAX retreated 4.28 percent.

On Tuesday, China shares were up 0.85 percent, and Nikkei was up 0.26 percent.

News that Saudi Arabia had broken off diplomatic ties with Iran sent oil and gold prices higher.

Brent crude was at 37.49 dollars per barrel, and gold was at 1076.25 dollars an ounce.