Global stocks onset the 2019 with an offbeat mode, as a global economic slowdown had started to blow the whistles much louder and frequenter than ever before. There had been a confirmation of a global economic slowdown, as Wednesday’s data, the 2nd of January, showed a gliding oil price which was inclined to remain downbeat, the sliding of bind yields and a strengthened Japanese Yen, apart from the Chinese industrial profit and factory data faltering as well as South Korean export lag.
While this report was being prepared, the 2nd of January, Wednesday, GMT. 12.15, the MSCI index of world shares, which keeps track of stock exchanges of 47 countries, drooled by 0.4 percent, as weak manufacturing activity had been spreading all over Asia, followed by a downbeat factory figures in Eurozone.
In particular, China had experienced a factory activity contraction for the first time over two years timeframe and tow truck appeared to be nowhere to drag the global economy out of an imminent doom. Earlier on Wednesday, the 2nd of January, in the Asia pacific trading session, the Mainland Chinese shares soured by 1.2 percent and Standard & Poor 500 had shredded off their early gains.
A corpulent cloud over global economy appears to be getting heavier, as Eurozone purchasing manager index or PMI data reached its lowest level since February 2016, as Britain’s FTSE 100 drained pre-holiday gains and plunged over 1 percent.