Fear of China Growth Crush Oil & Commodities

US oil prices remained on their downhill slide Monday. In the U.S. a barrel of crude hit a 52-week low coming in at $47.20 a barrel. This launched investors into reeling and reacting to China's largest 1-day stock sell-off since 2007. Worries over an oil glut continued to gain momentum as the fears of economic slowdown in China swept the world.

Today China is the world's second-largest economy. It is, however, no longer growing at its old double-digit pace like it was only a few short years ago. This is causing investors worldwide to question its reported 7% growth during the second quarter, and to wonder if that figure truly reflects China's economy to date.

The trade deficit in March reached a 6 year high which makes many feel the economy contracted in the first quarter of the year. Yet the general feeling is that the economy rebounded in April with stronger service sector activity. The issues faced in the first quarter are not present in the second quarter, giving people a positive perspective on GDP.

The trade deficit moved higher by 43% to over $53 billion in March of 2015. The jump was 9 year high with the number itself being a 6 year high. West Coast ports were stalled with trade talks until just recently, creating the surge. US Stocks, Treasuries, and the Dollar all fell today.