A small bounce in European shares and tentative stabilization in oil prices helped calm investors on Thursday, after a torrid few days that has wiped trillions of dollars off global markets. Laura Frykberg reports.
Worry on the world markets. European and Asian shares failed to recover from one of their worst days in months. Chinese stocks are down 3 percent, Japan's Nikkei dropping too. The key drivers remain the slowdown in China, and the global glut in oil. CMC Market's Michael Hewson. (SOUNDBITE) (English) CMC MARKETS, MARKET ANALYST, MICHAEL HEWSON SAYING: "There's concern about the fiscal health of oil producers, concern about bankruptcy, but also concern about a broader deflationary effect that the slowdown in China and the broader economy could have on equity market valuations which since 2009 have gone pretty much one way." And that way is down. Plunging stocks are forcing investors to rethink where they put their money - many turning to the safety of government bonds. Trillions of dollars have been wiped off the equity market, making investors look carefully at the current policies of major central banks. For those hoping the world's second largest economy can still be the saviour, think again. (SOUNDBITE) (English) CMC MARKETS, MARKET ANALYST, MICHAEL HEWSON SAYING: "We have got to get away from this mindset that China is going to pull the world out of a potential global slump." Oil producers are suffering particularly badly. The Russian rouble tumbled again - by more than 3 percent. And there's no sign of improvement in oil prices - they've fallen 25 percent this year - with Brent crude still below $28 ///