Will the Stock Market Crash in 2016?

China’s stock market crash on Monday triggered its first ever halt and rattled markets worldwide.

Japan’s Nikkei Stock Average lost 3.1%, Hong Kong’s Hang Seng Index fell 2.7%, and South Korea’s Kospi declined 2.2%.

U.S. markets also tumbled. The Dow Jones Industrial Average declined 448 points, or 2.6%, shortly after the market opened. The S&P 500 dropped 2.5%, and the Nasdaq Composite fell 3.1%. It was the worst new year open for U.S. stocks in 84 years.

Simmering tension between Saudi Arabia and Iran also caused some investors to worry.

Hours after Iranian protestors set fires Sunday in the Saudi Embassy, Saudi Arabia announced it was severing ties with Iran. Oil prices surged 2.9% to $38.35 a barrel amid speculation about a possible supply disruption.

China’s stock market crash is not expected to pressure developed markets over the longer term. Still, there are reasons to be concerned…

Full article: Will the Stock Market Crash in 2016? (Money Morning)

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