Black Friday: China hit more markets and Wall St. had its worst week in four years – Ambito.com

     Business
    
    
    Friday August 21, 2015
    
         
    

deepened in markets quake

World markets tumbled Friday’s heavy losses deepen recent days dragged by poor data on industrial activity in China, which sank to levels not seen since 2009, reinforcing fears of a slowdown in the Asian giant and the consequent impact on the global economy.

In this context, the benchmark of the New York Stock Exchange ended its worst week in four years (it fell 6.2%) and stood 10% below the record set last May 19 (which which in economic terms it is called “entering correction”). He also completed Friday its worst day of the year.

Meanwhile, major European markets also posted sharp falls and had their worst week of the year. In London, the FTSE-100 index of leading securities lost 2.8% on the Thursday and stayed at 6187.65 points. Frankfurt’s DAX fell 2.9% to 10,124.52 points.

The Paris Bourse suffered an even steeper decline of 3.2% to 4,630 99 points. The IBEX-35 Madrid shrank by 3% to close at 10,271.70 points. In Milan, the FTSE Mib index fell by 2.8% ending the day at 21,746 points.

On the NYSE, the day started with heavy losses by the pessimism installed in the world’s major stock after learning another troubling fact about the evolution of the Chinese economy.

Manufacturing activity in the Asian giant shrank in August to levels not seen since the 2009, to locate the purchasing manager (PMI, in English) its industrial sector index 47.1 points, according to the index developed by the financial magazine Caixin.

The selloff He continued raging the day and in the final three indicators plummeted and closed the worst day of correction on Wall Street since August 10, 2011, the last time the Dow fell more than 500 points.

A black day in the markets also raw materials, where the barrel of Texas arrived in New York trading below $ 40 for the first time since 2009 and almost lost Brent crude $ 45 in London.

Global markets fear that the slowdown in China, which last week was forced to almost 5% devalue the yuan and had to inject billions of dollars in their banks, end impacting the growth of the world economy.

It did not help the uncertainty in Greece following the resignation of Prime Minister Alexis Tsipras, which helped to warm even more encouragement in the European stock markets: Paris fell 3.19%, Madrid 2.98%, 2.95% Frankfurt, London and Milan, both with 2.8%

All sectors of Wall. Street closed with losses of more than one percentage point, led by technology (-3.6%), energy (-3.1%), financial (-2.8%), the raw material (-2.8%) and industrial (-2.6%).

“People are using China mainly as an excuse to sell,” said Keith Bliss, vice president of Cuttone & amp; Co in New York. “Many people know that this is very excessive. They are waiting and will return next week”, added

.

In addition, many investors anticipate the US Federal Reserve begin to raise interest rates before the end of the year, but expectations of a rate increase in September were moderated by the minutes of the July meeting of the Federal Reserve, divulged on Wednesday.

Chinese bad thing led to the Tokyo stock market closed with a strong decrease of 3%, its biggest drop of the year.

Concerns about the Asian giant’s economy also caused A sharp decline in Chinese stocks: The most important index, the Shanghai Composite fell 4.3% to 3,507 points.

The Shenzhen Component also lost 5.4% to stand at 11,902 points. The ChiNext, focused on technology stocks and often compared to Nasdaq, even yielded 6.65 percent to 2,341 units.

Meanwhile, in Japan, the Nikkei index, which groups the 225 best-performing stocks in the stock market in Japan, fell 2.99% and was below the psychologically important . 20.000 points to 19,435.83 points