The Year Began with a Fall


Asian stocks are falling on the first trading session this year after a report showed that Chinese manufacturing sector contracted for the first time in the last year and a half in December. The Caixin PMI fell below 50 (to 49.7) which is a signal of productive contraction.
The Hang Seng index is falling by over 3% this morning with the highest underperformed, CSI 300, down 1.5%.
Some analysts believe that China will implement the “targeted stimulus” which could create an upside for stocks. The Japanese markets are closed for the holiday.


In the US, President Trump invited leaders from both parties in Congress for a briefing as he wants to make a deal and end the US government shutdown. The futures on US indexes are falling this morning by 1%. A block of macroeconomic statistics will be published today in the EU as Italy, France and Germany will release their respective manufacturing PMI figures. The futures on European indexes following Asian markets today, futures for DAX 30 opened 0.8% lower, Stoxx 50 is already down by 1%.


The oil prices are falling today on the back of surging US crude production and concerns about an economic slowdown in 2019. WTI is trading 0.6% lower while Brent has lost 0.8% this morning.

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