Looking for the cause of this wobble, besides the move to wait for an interest rate increase in the US, the reason mentioned by most analysts is investors’ concern about the health of the world’s second largest economy.

As a result of these developments, global stocks had a record weekly decline.

Under the greatest selling pressure are the stocks with the strongest increases since the beginning of the year.

Wall Street had its strongest losing session in 4 years.

Michael Ingram – strategist at BGC Partners commented: `The market will not bottom until we have a clearer picture of the Chinese currency and US interest rates. Right now, there is none. And that’s it.`

In Europe, the Stoxx Europe 600 had its strongest losing week since August 2011.

This is also the general situation of major stock markets in the region.

Asia is the center of this fluctuation with the strongest weekly decline in 4 years.

With news from China, the pressure on commodity markets seems to have never ended since the financial crisis.

Crude oil prices yesterday fell below 40 USD for the first time since March 2009, due to signals of oversupply from the US and weak demand from China.

Crude oil is the backbone of many developing countries in the world.

China tilts global finance

The MSCI EM Currency Index – which tracks emerging country currencies – is at a 5-year low.

On Bloomberg, one currency investor called this a `race to the bottom`.

`It seems we are seeing the risk of the 1997 Asian crisis, when the currencies of emerging countries plummeted. The impact of China’s actions on other countries is huge, and the country’s growth slows down.`

China tilts global finance

Gold prices had the strongest weekly increase in 7 months thanks to investors’ need for shelter.

On the contrary, the gold market became a rare bright spot with the strongest weekly increase since January.

On the BBC, Nicholas Teo warned that China’s economic slowdown would erase hopes for a global recovery.

China regional economist at HSBC – Julia Wang also believes that the world economy may lose its recovery momentum.

However, some experts believe that the market is overreacting to recent events.