The week began on a dismal note for stocks across Asia and Europe with several markets seeing deep cuts on sustained selling.
The rout began in China where a fall in global commodity prices and worries over growth saw a huge selling pressure. This was the biggest fall seen in the Shanghai Composite in the last 7 years.
European shares also saw deep cuts with the German DAX down 1.3 per cent and the French CAC down 1.13 per cent.
Most of the global markets are awaiting the outcome of a US Federal Reserve Policy meeting slated for July 28 and July 29. If the policy meet hints at rate hikes in the US investors fear that we could see fresh round of selling pressure in stocks, especially emerging market stocks.