Why are the Chinese slowing down on gold and silver?
Chinese stocks are trading at their lowest levels in months, while the country’s yuan has fallen against the dollar and the yen, with some analysts forecasting a slowdown in the global economy.
The currency has lost more than $1 trillion in value since the beginning of this year.
The Shanghai Composite Index, the world’s largest, fell more than 10% Tuesday, while Japan’s Nikkei 225 Index fell nearly 2% to a record low.
The Dow Jones Industrial Average dropped about 4.1%, the S&P 500 dropped 0.8%, and the Nasdaq composite dropped 0,835.70 points.
The S&p 500 fell about 3% Tuesday morning.
Read moreChina’s central bank is preparing to start a new stimulus program next month, Bloomberg News reported.
The bank will increase the amount of cash it lends to businesses and households to help them weather the effects of the global financial crisis.
The move follows a warning from the central bank earlier this month that the country faces a “major” economic challenge.
Chinese stocks have been the worst performer in the world, falling almost 1% since the start of the year.
The Chinese economy is slowing as investors seek more stable returns and the country looks to diversify its export base.
More:Chinese companies have been buying assets from outside the country in an attempt to boost growth and offset the damage caused by the financial crisis, Bloomberg reported.
In September, the country announced it was cutting its capital outlay for foreign-exchange reserves by $1.8 trillion and cut back on investments abroad, Reuters reported.
China has also pledged to spend $3.2 trillion to rebuild the country, Reuters said.