by Calculated Risk on 6/30/2008 02:23:00 AM

The Shanghai SSE composite index is off another 1.9% tonight (most recent quote), and is now below 2700 for the first time since early 2007. The index is off 54% from the peak.

Click on graph for larger image in new window.

This is some serious cliff diving.

And other markets are also selling off, probably because of some combination of a slowing global economy and higher inflation.

As the NY Times notes: Falling Prices Grip Major Stock Markets Around the World

In ... Germany, the benchmark DAX index is off slightly more than 20 percent this year, and the CAC-40 in France is down almost 22 percent. The Euro Stoxx 50, a gauge for the 15-nation euro zone, has declined by about 24 percent. The nearly 15 percent decline in the FTSE 100 in Britain looks tame by comparison.

Emerging market indexes have fared even worse. The Hang Seng in Hong Kong has plunged nearly 21 percent, the Shanghai Composite has lost nearly half its value this year. The Bombay 500 in India lost about 38 percent.