The Rocky Road to Globalization

European and most Asian financial markets rebounded strongly as China’s stocks continued to slide. The Shanghai Composite index dropped 7.6 percent, just a day after its biggest loss in eight years triggered worldwide market turmoil. Beijing’s central bank followed by cutting interest rates and banks’ reserve requirements in hopes of ending the mayhem that erased a combined $5 trillion from global equity markets on Monday.

Dow futures indicated a sharply higher open on Wall Street, with premarket trading showing an initial gain of around 600 points, one day after a roller-coaster session that included a 1000-point drop. Inside China, government censors appeared to crack down on editors at the state-run People’s Daily: A day after it referred to the rout as “China’s Black Monday,” the newspaper had no mention of the financial upheaval.