"Black Monday" on the Chinese exchanges turned into a decline on all exchanges in the world: European shares closed lower, Brent crude fell by 6% (below $43 per barrel), the Dow Jones index fell more than 1,000 points within minutes after market open. For the Dow Jones are records, more than 800 points he never lost.
The stock markets of Germany, France, UK, Spain and Italy fell after the fall of the Chinese market.
Mass protests called "the Great fall of China". The sharp fall in the index fueled by concerns that the Chinese government lost control over the situation.
Us stock markets started trading later than the other, but the trend was the same – a sharp drop. For a few minutes, the Dow Jones fell 1000 points (6%), Nasdaq up 5.5 percent, standard & Poor's 500 – 4.5%.
The most affected stocks of multinational companies that led some analysts to memories of the collapse of the dot-com in the 2000s. However, the current "market collapse" has, on assurances of analysts of Chinese origin.
Managing Director of Horizon Investment Services Charles Carlson, commenting on the situation, said "most of the capacity of the company, showed the largest drop, are in China. In leaders of falling Facebook (11%), Apple (8%) and Netflix (13%)".
The main reason for the collapse – dependence of the collapsed companies from traders from other countries, " Carlson says. – A week ago due to the devaluation of the Chinese currency dropped the price of the shares of telecommunications companies whose shares were actively sold to Asian investors, which was the main reason for the fall. Secondly, influenced by a reassessment of economic growth in China, EU and USA. Less significantly influenced by the drop in oil prices.
Donald trump has accused China of exchange panic. "The market is falling due to bad planning. According to him, the United States is too dependent on the Chinese market, which is now "down" American.
The ruble is tied to oil
For US the main enemy is China, for Russia the main enemy – falling oil prices.
Head of Department of the faculty of Finance and banking, Ranepa, the former Chairman of the Central Bank Konstantin Korischenko explains that the exchange rate of the ruble against the dollar today and in the near future will essentially depend on the price of oil.
- When planning the budget of Russia was laid the price of 1 barrel of Brent oil at 3.1 thousand rubles. Now oil of this brand on the exchange is $43.92. If you divide the first figure by the second, you get 71.59 ruble, now the value of the dollar on the exchange 70,79 rubles, - said Korischenko.
- If the Central Bank will not resort to intervention, and the price of oil will continue to fall, the ruble could fall below 72 rubles for $ 1, - predicts the head of analytical Department TCF Bank Maxim Osadchy. – While oil prices fall, will fall the ruble.
The advantages of the fall
Advisor to the General Director on macroeconomics brokerage house "OTKRITIE" Sergey Chestnov noted that largely due to the weakening of the ruble is balancing the Federal budget.
- The weakening of the ruble, of course, has an adverse impact on the wallets of ordinary citizens, but rather is favorable for the stability of the Russian budget, - the expert believes. – Half of the revenues entering the Federal budget is income from exports. Consequently, dollars that are received from exporters, exchange to more the depreciating rubles, so the state can meet its obligations to citizens, including state employees, retirees and beneficiaries.
First Deputy Chairman of the Duma Committee on the budget Alexander Tarnavsky believes that the depreciation of the ruble could get more cash due to oil exports. According to him, foreign exchange gain Treasury only wins.