The benchmark had opened in solid positive territory after the People’s Bank of China injected 130 billion yuan ($19.9 billion) in short-term funds (http://www.marketwatch.com/story/china-central-bank-injects-20b-to-ease-investors-2016-01-04) into the country’s financial system to ease concerns among jittery investors.
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Equity strategists have generally been optimistic about the outlook for European stock markets in 2016 (http://www.marketwatch.com/story/why-europe-could-be-your-best-stock-bet-in-2016-2015-12-30), but sentiment on the first trading day of 2016 was exactly the opposite. USA crude also fell over 3 percent, trading around $32.75. The EconoTimes content received through this service is the intellectual property of EconoTimes or its third party suppliers.
They automatically stop trading in stock markets that drop or appreciate too sharply – a 15-minute break if the CSI 300 Index moves 5% from the market’s previous close, or a whole-day halt if it moves 7% or more. “In August the Chinese said it would be a “one off” devaluation, but now the market knows it is much more than that”.
French foreign trade deficit decreased in November from a month earlier, as exports grew faster than imports, figures from the French Customs showed.
The news of the suspension helped markets recover slightly, however, markets in Europe and the USA remained under pressure.
Asian markets were mixed, with the Chinese Shanghai Composite closing nearly 2% higher following days of extreme losses.
Shares of Vedanta cracked 5 percent while that of Tata Motors, Tata Steel and Adani Ports slipped 4 percent each.
Shares in London-listed retailer Marks and Spencer managed to swim against the tide after announcing that its chief executive Marc Bolland will step down this year.
Markets were also jittery since North Korea confirmed on Wednesday that it had conducted a successful hydrogen nuclear bomb test.
On the data front, the euro zone unemployment rate fell to 10.5 percent in November , its lowest level in more than four years.
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