Wall Street entered correction territory on Monday, with the Dow sliding below 16,000 for the first time since February 2014 following a more-than 8% drop in Chinese stocks and a selloff in oil and other commodities.
China's securities watchdog is investigating the impact of automated trading on share markets, as authorities step up a crackdown on what they regard as heavy speculative selling that could destabilize the world's second-largest economy.
Investors begin 'capitulation' selling of EM, gold, resources. Investors are dumping billions of dollars worth of gold, commodities and emerging market assets in a wave of "capitulation" selling, Bank of America Merrill Lynch said on Friday.
U.S. stocks fell on Tuesday in the wake of results from IBM and United Technologies that dampened early optimism over earnings season as investors awaited quarterly profits from tech giants including Apple and Microsoft.
In the United States, investors are probably waiting to see the results of some company earnings before deciding on what to do with their long equity holdings. The second quarter reporting season has already started and will kick into a higher gear next week.
Hundsun Technologies Inc, the financial information technology company controlled by Alibaba Group Holding Ltd founder Jack Ma, on Monday rejected local media criticism that blamed its platform for China's stock market rout.