A weak economic data in China has set in a weakness in the global markets on the first day of trade in 2019.
The manufacturing sector in China is showing a continuous decline for the second time in December. This is just confirming that the Chinese economy is under great pressure, says macroeconomic analyst at CEBM Research Group, Zhengsheng Zhong.
Global fear has set in with the Chinese economy seeing a breakdown. The New Year has brought a lack of confidence in the investor mind as the markets across the globe witnessed a big fall on Wednesday.
In Asia, the Hang Seng closed deeply in the red, down by 2.8 percent. The Australian ASX was down by 1.6 percent. The Shanghai Composite also fell by 1.2 percent.
In Europe, the FTSE closed down by 1percent, while the German DAX closed flat. CAC from France was also affected as it saw a drop of 1.3 percent.
In the U.S. the Dow Jones went tumbling early on trade. It witnessed a 375-point drop, while the S&P went down by 1.3 percent and the Nasdaq slid by 1.7 percent at the start.
Some of the companies that were leading the decline were Tesla (TSLA), Microsoft (MFST), Apple (AAPL) and Advanced Micro Devices (AMD). Shares of Netflix, Alphabet, Facebook, and Amazon were also pulling the Nasdaq Composite down.
With Asia taking the lead with a downward slide, the European market went down too and the U.S. markets are continuing the decline from Asia. China, being the second-largest economy is showing poor manufacturing data which is causing a flutter of worry in the global economies.
Worries of a global slowdown is hitting investors, says UBS floor operations director, Art Cashin.
Brent crude was also seeing a slump in prices, trading at $53.27 per barrel, while the U.S. crude was trading at $45.00 per barrel as it slid 41 cents.