A renewed Chinese stock market rout rippled through international markets on the first trading day for 2016. Fresh concerns over the health of China's economy sent global equities down by the most in more than four months.
European indices fell between 2-3%, with the US stock market fearing slight better, down 1.5%. Chinese share market sank almost -7% triggering a trading halt in China and its largest one day fall in 9 years.
Shenzhen Composite Largest falls since 1996
Why?
A combination of factors can be highlighted as the major drivers for the market selloff. Below ATM discusses these points in detail
Weak data
Chinese growth concerns were brought back into the limelight as weak Chinese manufacturing data once again spooked investors in regards to China’s economic strength. The Chinese December manufacturing survey was announced at 48.2 which was slightly below expectations (a number below 50 indicates manufacturing activity is contracti...
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