Stock prices are again falling on the Tel Aviv Stock exchange this morning. After losing 4.1% yesterday, the Tel Aviv 25 Index is currently down a further 3.33%. The Shanghai Stock Exchange is about 8.5% off, and Wall Street futures contracts point to sharp falls.
In an attempt to calm the markets, an attempt that has so far failed, the Chinese government announced yesterday that for the first time it would allow local pension funds to invest in the stock market. This move opens up the potential for hundreds of billions of yuan to flow into the Chinese stock market and restore investor confidence.
More than $5 trillion dollars have been wiped off the value of share markets around the world since China unexpectedly decided on a devaluation of the yuan, setting off speculation and fears that the slowdown in the world's second largest economy was worse than had been thought.
Oil prices have fallen to a more than six-year low, with Brent Crude down 2.4% at $44.4 a barrel.
On the local market, Teva is down 3.2%, Bank Leumi is down 3.84%, Bank Hapoalim is down 3.71%, Bezeq is down 3.04%, and Perrigo is down 1.94%.
Published by Globes [online], Israel business news - www.globes-online.com - on August 24, 2015
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