23:54 GMT +319 September 2019
Listen Live
    Specialist Meric Greenbaum works on the floor of the New York Stock Exchange, Monday, Jan. 4, 2016

    US Stocks Plunge as Trading Begins in 2016 - Market Reports

    © AP Photo / Richard Drew
    US
    Get short URL
    1105
    Subscribe

    US stock prices tumbled to start the New Year, following a plunge in Chinese equities that spread to Europe amid fears that a slowdown in China’s manufacturing will drag down the global economy, according to market reports on Monday.

    WASHINGTON (Sputnik) The S&P index, a key measure of US markets, was off nearly 2 percent at 10 am, a half hour after trading opened on the first trading day of 2016.

    “We’ve had a number of negatives out there in the US, and China is a reminder that there aren’t many things to be bullish about going into this year,” Michael O’Rourke, chief market strategist at Jones Trading Institutional Services LLC told Bloomberg news service.

    Earlier on Monday, China’s Shanghai and Shenzhen stock exchanges stopped trading after share prices fell about 7 percent. It was the first time Chinese authorities employed a “circuit breaker” mechanism to close the markets to halt panic selling.

    Manufacturing surveys showed China's factory activity contracted at a sharp pace in December 2015. Tensions in the Middle East between Iran and Saudi Arabia, which boosted oil prices, were also cited as source of investor jitters.

    Related:

    US Giants’ Stocks Slump After Trade Body Seeks to Block Takeover
    US Stock Markets 'Over-Reacted' to Chinese Currency Adjustment
    No Stress: US Stock Market Rebound After Monday Turmoil
    Tags:
    investors, stock markets, United States
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik