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

Some people on Twitter called it “Black Monday”.

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”.

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.

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

Many traders had hoped that such support measures, which could include an interest rate cut, would have come from Beijing over the weekend after its main stocks markets slumped 11 percent last week. The world’s second-largest economy moved two weeks ago to devalue its...

Although Fed officials agreed that the state of the US economy should warrant a lift-off of the interest rates, they believed that it was a risky move in the context of a lagging inflation and a weak world economy.

U.S. stock indices had gone almost 1,000 days without a 10 percent decline from their recent peaks, an unusually long stretch given that corrections usually happen once a year on average.

Play video “China’s Economy: What Happened?”

(Close): Wall Street fell for a fifth consecutive trading session amid a dramatic global sell-off as fears over China’s slowing economy intensified.

Concerns about a China-led global economic slowdown and tumbling commodities prices had U.S. traders fearing the worst after a 5 percent decline in the both the S&P and Dow last Thursday and Friday.

The minutes to the July 28-29 meeting of the policy-setting Federal Open Market Committee, released last week, showed both a caution over still-low inflation and a concern over China’s economic malaise.

Many traders had hoped Beijing would take support measures, such as an interest rate cut, over the weekend after China’s main stocks markets slumped 11 percent last week.