08/24/2015 10:28 EDT | Updated 08/24/2016 05:59 EDT

China's 'Black Monday' Spurs TSX, Dow Jones Selloff, Loonie Slides

TORONTO — The Dow Jones Industrial Average plunged 1,000 points and the Toronto Stock Exchange fell by more than 750 points points at market open on Monday, but quickly recovered some of those losses as North American markets followed China down in what is being dubbed "Black Monday."

The Shanghai composite index lost 8.5 per cent Monday, giving up all its gains this year, in what has become a months-long slide for the market.

The loonie traded at 75.54 cents US, Monday morning, down 0.40 of a U.S. cent from Friday.

The Dow had recovered much of those losses by mid-afternoon Monday, trading down about 385 points from Friday's close, down 2.34 per cent on the day. The S&P TSX composite also regained half its initial losses, and was trading down 187 points, at around 13,300 as of mid-afternoon. It's down from highs above 15,000 in April.

Scotiabank warned last week that Canadian stocks, pushed down by low commodity prices, are in "severe correction territory." But the bank noted Canadian stocks are "oversold" at this point.

On the commodity markets, the December gold contract rose $1 to US$1,160.60 an ounce, the October crude contract was  down $1.45 at US$39 a barrel and the October contract for natural gas was down four cents at US$2.64.

— The Huffington Post Canada, with files from The Canadian Press