US: Stocks drop as China equity slump deepens

[NEW YORK] US stocks tumbled in opening trade Wednesday as another big drop in the Chinese equity markets amplified concerns about the world's second-biggest economy.

Five minutes into trade, the Dow Jones Industrial Average was at 17,655.12, down 121.79 points (0.69 per cent).

The broad-based S&P 500 dropped 13.04 (0.63 per cent) to 2,068.30, while the tech-rich Nasdaq Composite Index fell 36.14 (0.72 per cent) to 4,961.32.

The benchmark Shanghai Composite Index closed down 5.90 per cent with a Chinese securities official decrying "panic and irrational" selling. Chinese stocks have dropped more than 30 per cent since mid-June.

"The concern is that the popping of this bubble may seriously crimp the already slowing Chinese economic growth rate," said Briefing.com.

European stocks rallied, but Briefing.com said the rise was based on "questionable assumptions" underlying a hoped-for deal to resolve the Greek debt crisis.

AFP