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Bahrain also declined, but it was the only market that lost below one per cent at 0.37 per cent.

“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 bailout was in “the interests of Greece and Europe”, Schaeuble told the Bundestag.

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”.

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.