Chinese shares plunged 7.0%, before trading was halted due to extremely high volatility. The rout was triggered after a Manufacturing PMI survey showed contraction in the sector for the tenth consecutive month. The massive losses had reverberations across the globe, with the pan-European index FTSEurofirst hitting a three-week low at 1,392, before settling at 1,405, down a heavy 2.25% for the day. Germany's DAX index even underperformed that, collapsing 400 points, or near 4.0% to 10,320. France's CAC 40 index dived 140 points, or 3.0% to 4,533. Britain's FTSE was a tad better, losing 125 points, or about 2.0% to trade at 6,115.

Wall Street followed suit, with Dow Jones diving 350 points, or 2.0% to 17,076. NASDAQ gave up 116 points, or 2.37% to 4,888. S&P 500 was down 37 points, or 1.83% to 2,006.

Oil prices on the other hand expanded their profits, as tensions rise in the Middle East after Saudi Arabia severed its ties with Iran over executing the Shia cleric Nimr Al-Nimr. Brent crude futures soared $1.58, or 4.25% to $38.78 a barrel. U.S. West Texas Intermediary (WTI) crude futures jumped $1.22, or 3.30% to $38.20 a barrel.

Gold prices also made big gains as investors flock to safe-havens, with the precious metal's futures adding a solid 20 dollars, or 1.86% to $1,080 an ounce. Silver also rose by 35 cents, or 2.55% to $14.55 an ounce. Industrial metals weren't as lucky however, as the tumult in China raised fears about its future economic stability. Copper futures dropped five cents, or 2.45% to a week-low at $2.083 a pound.

Euro recorded deep losses despite good manufacturing data. It fell to a two-week low against the dollar at 1.0834, after rising to as high as 1.0944 earlier. It tumbled to an eight-month low against the resurgent yen at 129.13, down 1.06% for the day.