European stocks drop on first trading day of 2016

Monday, 04. January 2016 11:21

European indices have been falling on Monday morning as a result of the sell-off in the Chinese market, which collapsed around 7% leading to a trading halt to prevent further losses.

Chinese indices crashed after fresh economic data showed China’s manufacturing activity dropped in December, raising further concerns about the country’s economy. The Shanghai Composite plunged 6.9%, the Shenzhen Composite landed 8.2% lower and the CSI 300 dropped 7%. Other Asian markets followed a downward trend.

This has negatively impacted European stocks with the DAX falling the most, 3.32% (10:52 a.m. CET), and all its constituents trading in red. The worst performer on the index was the energy company RWE AG, which plunged 5.55% (10:55 a.m. CET) as oil prices dropped. Brent crude for January delivery fell 1.96% to $37.90 per barrel (11:01 a.m. CET) and WTI oil for January delivery declined by 1.95% to $37.19 per barrel (11:00 a.m. CET).

The STOXX 50 decreased by 2.35% (10:58 a.m. CET), the CAC 40 was down 2.43% and the FTSE 100 recorded a 2.08% loss (both 11:00 a.m. CET).

Related Links: RWE AG
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