uploads///Eurozone Major Indices on January

China’s Second Day of Trading Halts Weighed on Global Market


Jan. 7 2016, Updated 3:09 p.m. ET

Shanghai’s massive sell-off

On Thursday, January 7, 2016, China’s Shanghai Composite Index fell more than 7%. As a result, trading was halted for the day. It was the second trading halt this week. Poor economic data suggested contraction in economic activity in China (MCHI). As the economic slowdown in the world’s largest economy became clearer to investors, the global market tumbled as investors became nervous about their investments.

Article continues below advertisement

Crude oil hits its multiyear low

As we discussed previously, growing conflict between the Middle East’s major oil exporters created a supply glut in the world market. China’s slowdown spurred the downward movement of crude oil.

Major indexes of the Eurozone

The major indexes of the Eurozone opened in the red in Thursday’s early trading and continued to trade in the negative zone. The returns of these indexes as of 9:00 AM EST on January 7, 2016, are as follows:

  • The United Kingdom’s FTSE 100 Index fell 2.7%.
  • Germany’s DAX fell 3.4%.
  • France’s CAC 40 fell 2.8%.
  • Switzerland’s Swiss Market Index fell 2.7%.

Asia’s major indexes

The major Asian indexes also fell on January 7, 2016. Japan’s Nikkei 225 fell 2.4% and Hang Seng fell 3.2%. China’s economic slowdown, North Korea’s H-bomb test, and lower crude oil prices due to the rise in geopolitical tensions in the Middle East became heavy on developed (EFA) and emerging nations (EEM). Major stocks of Nikkei such as Toyota Motor (TM), Honda Motor (HMC), and Sony (SNE) fell 2.6%, 3.1%, and 3.5%, respectively, on January 7, 2016.

In the next part of this series, we’ll look at FEZ’s various industries and how they performed on January 6, 2016.


More From Market Realist

  • Roger Altman
    How Evercore Chairman Roger Altman Made His Millions
  • ZeroHedge logo
    Financial Blog ZeroHedge's Controversial Foray Into Political News
  • George Clooney
    George Clooney’s $600K Tequila Investment Made Estimated $233 Million
  • WallStreetBets and silver advertisement
    Silver Squeeze 2.0 and Wall Street Silver, Explained
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.