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The STOXX 600 Basic Resources Index, whose constituents are mostly mining stocks, and the energy sector fell 10 % and 8.8 % respectively, as commodities slumped to multi-year lows, with China being one of the world’s biggest users of metals and oil.

The speed at which this happened yesterday was eerily reminiscent of the May 6, 2010 flash crash, as bids seemingly disappeared only to resurface as fast as they vanished.

“There is no end in sight to the nose-dive that oil prices have been experiencing”, Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt, said in a report. A stronger greenback makes dollar-priced oil more expensive for buyers using weaker currencies, denting demand.

The tumult began when the Dow opened Monday with a 1,000-point nosedive.

Shanghai: Shanghai stocks tumbled 6.41 per cent in early trading on Tuesday, extending the worst plunge for eight years after worries China’s faltering economy could hurt global growth sent world markets nosediving.

The Shanghai Composite Index was down 4.3 percent at 3,071.06 at midday Tuesday after falling 6.4 percent in the first minutes of trading.

The death toll from the Tianjin warehouse explosions rises to 135 as of Tuesday afternoon, according to the latest data from rescue authorities.

The daily said that market capitalisation fell by Rs. “This is the biggest one-day slump in China since 2007”.

The cause of the global market volatility centres on fears that the world’s second biggest economy is slowing. “And I don’t see any signs of meaningful government intervention”.

The local unit has shed almost 15 percent of its value against the dollar this year, pressured like other commodity currencies by slowing growth in the world’s second largest economy, as well as expectations that U.S. rates will soon rise.

Since the panic got triggered from China over its slowdown worries and its impact on the world markets, the worst of the brunt was suffered in the Chinese markets, spreading to Hong Kong, Taiwan, Japan, Australia and later in the day to Europe.

Fears that Chinese growth is weakening dragging down the global economy with it are already hammering commodities and world stock markets. For years, investors have been fretting that the market could drop sharply when the central bank starts raising rates.

“The initial reaction in the equity market was aggressive as many expected that this news would be out at the weekend”, Guardian Stockbrokers’ director of trading, Atif Latif, said.

Japan’s Nikkei 225 Index dropped by 4.61% to 18,540.68.

The benchmark S&P index has accumulated 9.95 percent of losses in just five sessions.