January 2016 - Chinese chaos kicks off 2016
Worries over China’s ability to keep up its rapid pace of economic growth dramatically increased when PMI data came in weaker than expected, meaning China’s contraction had now lasted ten months – and causing chaos around world markets.
For the first time, Chinese regulators activated a suspension in trading as a circuit breaker safety measure. As in August 2015, state-directed buying of stocks competed with individual selling of equities, but China’s attempt to ‘buck the market’ failed.
The butterfly effect was also felt in Europe, with an initial bounce giving way to more selling, while in London the FTSE fought hard to hold on to small gains.
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