World markets were shaken on Wednesday by a crash in Chinese stocks and concerns after euro zone leaders set an end-of-week deadline for Greece to produce proposals to secure a loan deal, while commodities prices stabilized.
U.S. stocks were down 1 percent in early trading after a 6.75 percent plunge in China shares overnight .CSI300. Securities regulators there warned investors were being gripped by "panic sentiment.
The yen rose to a six-week high against the dollar as investors sought safe-haven assets. Benchmark copper CMCU3 on the London Metal Exchange was up 3 percent after earlier hitting a six-year low of $5,240 a tonne on worries about demand in top consumer China.
More than 30 percent has been knocked off the value of Chinese shares since mid-June, and investors are worried China's market turmoil could destabilize the global economy
"Greece and China have been at the forefront of investors' minds right now, although China is the bigger factor simply because of its size and its role as a global market player," said Ninh Chung, head of investment strategy and portfolio management at SVB Asset Management in San Francisco.
Minutes from the most recent Federal Reserve meeting also were on tap for U.S. markets.MSCI's all-country equities world index .MIWD00000PUS lost 0.8 percent, while the Dow Jones industrial average .DJI fell 179.48 points, or 1.01 percent, to 17,597.43.
The S&P 500 .SPX lost 20.61 points, or 0.99 percent, to 2,060.73 and the Nasdaq Composite .IXIC dropped 58.00 points, or 1.16 percent, to 4,939.46.
In Asia, Hong Kong shares .HIS dropped 8 percent, and Japan's Nikkei .N225 and stocks in Australia .AXJO took heavy blows, leaving investors only the yen JPY= and safe-haven government bonds for refuge. The yen rose to a six-week high against the dollar.
European shares .FTEU3 were up 0.1 percent and looked on course earlier to snap a four-day losing streak.In addition to China, eyes are still also on Greece, which made a formal request for a three-year loan deal from the euro zone rescue fund.
The bloc's leaders on Tuesday gave Athens until the end of the week to come up with proposals for reforms in return for loans. Without the aid, Greece is likely to crash out of Europe's single currency.
U.S. stocks were down 1 percent in early trading after a 6.75 percent plunge in China shares overnight .CSI300. Securities regulators there warned investors were being gripped by "panic sentiment.
The yen rose to a six-week high against the dollar as investors sought safe-haven assets. Benchmark copper CMCU3 on the London Metal Exchange was up 3 percent after earlier hitting a six-year low of $5,240 a tonne on worries about demand in top consumer China.
More than 30 percent has been knocked off the value of Chinese shares since mid-June, and investors are worried China's market turmoil could destabilize the global economy
"Greece and China have been at the forefront of investors' minds right now, although China is the bigger factor simply because of its size and its role as a global market player," said Ninh Chung, head of investment strategy and portfolio management at SVB Asset Management in San Francisco.
Minutes from the most recent Federal Reserve meeting also were on tap for U.S. markets.MSCI's all-country equities world index .MIWD00000PUS lost 0.8 percent, while the Dow Jones industrial average .DJI fell 179.48 points, or 1.01 percent, to 17,597.43.
The S&P 500 .SPX lost 20.61 points, or 0.99 percent, to 2,060.73 and the Nasdaq Composite .IXIC dropped 58.00 points, or 1.16 percent, to 4,939.46.
In Asia, Hong Kong shares .HIS dropped 8 percent, and Japan's Nikkei .N225 and stocks in Australia .AXJO took heavy blows, leaving investors only the yen JPY= and safe-haven government bonds for refuge. The yen rose to a six-week high against the dollar.
European shares .FTEU3 were up 0.1 percent and looked on course earlier to snap a four-day losing streak.In addition to China, eyes are still also on Greece, which made a formal request for a three-year loan deal from the euro zone rescue fund.
The bloc's leaders on Tuesday gave Athens until the end of the week to come up with proposals for reforms in return for loans. Without the aid, Greece is likely to crash out of Europe's single currency.
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