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The Standard & Poor’s 500 index lost 13 points, or 0.6 percent, to 2,083 and the Nasdaq composite fell 29 points, or 0.6 percent, to 5,030.

Mumbai: In its biggest intra-day crash this year, stock market benchmark Sensex plunged by 1,006 points while Nifty fell below 8,000 level in early trade today due to heavy selling by funds amid global sell-off as worries about China’s economy deepen.

The People’s Bank of China reformed the exchange rate formation system on August 11 to better reflect market development in the exchange rate of the Chinese yuan against the US dollar.

The Dow did rally from that point and ended the day down 588 points.

To put the overall foreign exchange reserves number in perspective, total emerging market foreign reserves in 1999 stood at around US$610 billion. “They’re not sure what’s going to happen overseas, and that uncertainty is winning out”.

The People’s Bank of China, the country’s central bank, on Tuesday morning moved to devalue its tightly controlled currency, the Yuan, following weaker than expected Chinese import and Export data over the weekend.

Rupee decreased to below the Rs 66 level against the dollar for the first time in nearly two years in opening trade today.

On Friday, the People’s Bank of China set the yuan midpoint at 6.3990 yuan to the dollar, slightly stronger than Thursday’s levels.

European markets continued to fall during the trading session as fears of currency wars ignited a fresh bout of selling across global markets.

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

According to a statement released by the European Commission (EC) immediately after the meeting, the new billion-dollar loans will be made available over the next three years to Greece by the ESM.

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.