China's 'new normal' forcing global markets to adjust

Chinese officials have put the word out, asking its people to adjust to the "new normal" of economic growth, which is slower compared to the sustained growth that had made it the second biggest economy in the world.

Although China's request was directed at its citizens, the world may have to adopt a similar thought, particularly as China’s massive economic shift continues to rattle international markets. According to The Wall Street Journal, the current economic slowdown is the result of China's unstoppable growth, state-backed debt and market transition heading farther away from considerable infrastructure spending, huge exports and smokestack industries.

China's debt has doubled past the size of its economy and many industries including construction and steel have been left reeling. As one of the biggest market contributors in the world, the country's economic crisis continues to send ripples across the globe.

U.S. and European markets in particular have suffered losses but it appears the situation is easing up. According to The Guardian, the U.S. market climbed back up as Europe only received losses from Monday's mayhem. Recovery in the U.S. was a result of positive economic news, including the recovery of the Conference Board’s consumer confidence index from 91.0 to 101.5.

Conference Board economist Ken Goldstein shared that even given Tuesday's rally, volatility will continue to persist in financial markets “There’s nothing particularly new here," Goldstein said. "China’s economy is slowing, we knew that."

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