The Russell 2000 index of small-cap stocks also confirmed a move into correction territory, a 10-percent decline from its most recent closing high on June 23. Oil plunged below $40 for the first time since the financial crisis, and government bonds rallied as investors raced into hiding spots. Stocks on Wall Street fell more than 1% and European bourses slipped more than 2% in a global rout spurred by a 4% decline in Shanghai stocks. Investors are selling the biggest winners of 2015. The latest market plunge also took its toll on the stocks of companies based in Wisconsin. The Russian ruble is down 20 percent so far in August, and Brazil is also down 20 percent, putting it in a bear market. Before this week, US equities had held their ground throughout 2015. However, the central bank has been sending mixed signals. “To our minds, the gradual recovery taking shape in the advanced economies can weather what we expect will be a prolonged period of weaker growth in a number of the major emerging markets�, the analysts said. “Investors have to be much more careful now with that technical development�. Worries over China continued after manufacturing activity in the country fell to a six-and-a-half-year low. The MSCI All-Country World Index tumbled 2.6 per cent to the lowest since October. Investors have sought safety in the yen, which strengthened for a third day against the dollar. The new bout of global selling followed news of a survey showing manufacturers on the mainland continue to contract. In its worst single session in almost four years, the Dow Jones Industrial Average lost more than 500 points, or 3.12 per cent, while the broader S&P 500 gave up 3.19 per cent and the Nasdaq Composite shed 3.52 per cent. “The whole world’s looking a little bit sad�, said Mark Lister, head of private wealth research at Craigs Investment Partners Ltd.in Wellington, which manages about US$7.2 billion. “This really appears to be a China phenomenon�, Mr. Pride said. The main benchmark wiped out $1.1 trillion of its market value over the week. The consumer staples index fell 1.5 percent, moving into the red for the year. Trading patterns show the declines are poised to slow. The Dow plummeted 531 points, concluding its worst week since 2011. Amid the selloff, the S&P 500 is still trading at 17.9 times earnings. Stock market corrections have historically happened every 18 months. Futures show that traders see a 34 per cent chance the Fed will raise interest rates at its September meeting, down from a 48 percent probability at the end of last week. With the substantial losses on the day, all three major averages have fallen to new multi-month intraday lows. ENERGY: Benchmark U.S. crude fell 55 cents per barrel to $40.76 in electronic trading on the New York Mercantile Exchange. The US pumped crude in July at the fastest pace for the month since at least 1920, the American Petroleum Institute reported Thursday. The yield shaved off a total of 14.4 basis points this week-a sizable move for Treasurys and the largest weekly decline since March 20.

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