Weak economic data in China hits global stock markets.
M2 EQUITYBITES-September 2, 2015-Weak economic data in China hits global stock markets
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Fresh concerns regarding growth in China has affected global stock markets, with the main indexes dropping sharply, the BBC reported on Tuesday.
European markets fell with the FTSE 100 in the UK closing down 3%, the Cac 40 in Frnace and the Dax in Germany ending around 2.4% lower. In the US the Dow Jones was down by 1.9% to 16,215.
Figures for August revealed that factory activity in China is contracting at its quickest pace for three years. Official manufacturing purchasing managers' index (PMI) fell to 49.7 from 50 in July, a figure of less than 50 is indicatve of contraction.
Josh Mahony, from online trading company IG Index, said "There are precious few signs that China is beginning to recover, and while [the People's Bank of China's] action can provide a temporary reprieve, we are yet to see any evidence that it is doing any good to the economy,".
In addition to the poor factory data in China investors are said to be unsure about the US central bank's next move, with many having previously expected a rate rise, the first sine the financial crisis, in September. Investors are now said to be less certain given the recent stock turmoil.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Sep 2, 2015|
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