Chinese slump sinks global stocks

World stock markets plunged yesterday, as a near 9% dive in China shares and a sharp drop in the dollar and major commodities sent investors rushing for the exit.

The Dow Jones fell over 1,000 points as Wall Street opened, and the benchmark Standard & Poor’s 500 index slid more than 2.5%, a drop that puts it nearly 10% below its record high.

A key measure of US equity volatility, the CBOE Volatility Index shot above the 50 mark for the first time since 2009, and the New York Stock Exchange was forced to implement special price-indication measures to allow for a more fluid start to trading.