Wall Street tripped on its first day of trading in 2016. Opening the year with China and Europe in losses.
January 4's official trading started with the year's biggest intra-day sell off with U.S Stocks. This is the biggest intra-day sell off since September 2015. However, the Dow dropped to 423 points, or 2.4%, to 17,002 at 12:25 PM Eastern. The S&P 500 shed 2.3%, or 48 points, to 1,995 and the Nasdaq fell 2.8%, or 141 points, to 4,866.
China, trying to extend their hours to meet United States business hours, halted trading within just twenty four hours. European markets also depressed as investors used China's drop in the market as a slowdown indicator for 2016.
China used a "circuit breaker" mechanism for 2016. The Shanghai Composite Index was at the lowest level, placing at 6.9% to 3,296.66. Stock markets in Shanghai and Shenzhen halted trading to avoid further depression. The steep fall, though halted, hurt China especially when Chinese officials have been trying to restore investor confidence after stocks plummeted that rippled through the global markets.
Huang Cengdong, a securities analyst in Shanghai, explained that selling increased as investors tried to lock in trades before it was eventually halted.
China's slowdown was affected by manufacturing weaknesses and Mizuho Bank Ltd. commented that China's factory data is...
...still a long way off stirring up cheer about global demand recovery. Asian exporters are expected to continue struggling with exports contraction and growth prospects dampened by related manufacturing gloom.
In addition, escalating tensions in the Middle East increased oil prices. Saudi Arabia is contemplating cutting its diplomatic relations with Iran. Ric Spooner, CMC's Chief Analyst, says that this is a major and world-wide concern in oil markets especially when a political situation threaten's the global oil supply.
Reports have indicated that this does not look like a good start for China.
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