Global markets plummeted Tuesday, sparked by a selloff in China’s premier exchange that then spread to Europe and North America.

In Toronto, the S&P/TSX composite index lost 364.35 points, or 2.72%, to 13,040.11, giving back practically all the gains it made in February.

New York markets also sank. The Dow Jones industrial average lost 416.02 points, or 3.29%, to 12,216.24, its biggest one-day drop in five-and-a-half years.

The Nasdaq composite index lost 96.65 points, or 3.86%, to 2,407.87, and the S&P500 lost 50.33, or 3.47%, to 1,399.04.

European markets shared in the pain as well. London’s FTSE 100 index lost 2.31%.

The Shanghai stock market, which had seen red hot gains over the last year or more, gave up 8.8% and started the chain reaction. The drop on the Chinese market led investors to pull out, fearing signs of an overheated world economy.

In Toronto, all 10 of the TSX main groups lost ground.

The energy index fell 2.12% despite a modest rise in the price of oil. Light, sweet crude rose 7¢ to US$61.46 a barrel.

Canadian Oil Sands Trust units gave up 27¢, or 0.99%, to $27.08.

The materials index gave up 4.97%, while the gold index finished down 6.10%.

Gold fell $2.60 to US$687.20 an ounce.

Kinross Gold Corp. lost $1.15, or 6.77%, to $15.84.

Financials went down 1.78%. TSX Group Inc. lost $1.50, or 2.97%, to $49.02.

The junior S&P/TSX Venture composite index dropped 164.67 points, or 5.03%, to 3,109.97.