Tuesday, 29 December 2015

Chinese stocks plunge, US may already be entering recession

Markets were mostly down on Monday, led by Chinese stocks.

The Shanghai Composite Index plunged 2.6 percent after data released on Sunday showed that profits at Chinese industrial companies fell 1.4 percent in November from a year earlier, marking a sixth consecutive month of decline.

Most other Asian stocks also fell but Japanese stocks showed resilience as the Topix index rose 0.9 percent on Monday even though a report early that day showed that the nation’s industrial output fell 1 percent in November from a month earlier.

In the West, the STOXX Europe 600 fell 0.5 percent and the S&P 500 slipped 0.2 percent as US crude prices fell 3.4 percent.

“We’re just following the price of oil,” said Peter Cardillo, chief market economist at brokerage First Standard Financial.

Or maybe there is more to the fall in US stocks.

In an interview with Bloomberg on Monday, Marc Faber said that “I believe that we’re already entering a recession in the United States” and US stocks will fall in 2016.

No comments:

Post a Comment