USA Today reported this morning that Chinese shares fell dramatically in June after a year long rally that took it to what seems to be unsustainable heights. The effect was echoed across other Asian markets, as Hong Kong's Hang Seng was down 3.2 percent and Japan's Nikkei 225 dropped 1 percent.
With speculations about the impact on stock prices across the board being reported on, one of the big questions was how the price of oil would react with drop of the Shanghai Index. MarketWatch.com
is reporting that Texas Intermediate crude is down 2.1 percent to $47.59 a barrel, and Brent crude, the global oil benchmark, is down 3 percent to $53.65 a barrel in response to the news. The price drop is driven by fear of reduced demand from China, the world's second-largest energy consumer.
Markets around the globe will be keeping a careful eye as everything unfolds, and so will all of us at Plymouth Technology!