Chinese Stocks Extend Rout as Economic Growth Concerns Deepen

Chinese stocks fell, extending last week’s plunge, as factory-gate price data fueled concern the economic slowdown is deepening.

The Shanghai Composite Index slid 1.1 percent to 3,152.17 at 9:48 a.m. local time, led by financial and consumer-discretionary companies. The producer price index slumped 5.9 percent in December, extending declines to a record 46th month, data over the weekend showed. The Hang Seng China Enterprises Index tumbled 3 percent to its lowest level since 2011.

Source : Bloomberg

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European Stocks Deepen Slump as China Rout Worsens on Yuan Cut

European stocks tumbled to a three-month low after yet another cut in China’s yuan fixing sparked a selloff in that country’s equities and forced its market to shut early.

The Stoxx Europe 600 Index slid 2.2 percent to 346.55 at 8:13 a.m. in London, as all but 31 stocks fell. Commodity producers and carmakers, among those with the most sales exposure to China, led declines. A gauge of miners fell to its lowest level since 2009, with Anglo American Plc and Glencore Plc dropping 7.4 percent or more. Volkswagen AG and BMW AG slipped at least 4.4 percent, dragging a measure of automakers to a three-month low.

China’s CSI 300 Index triggered a full-day trading halt less than 30 minutes into the session, following a decision by the country’s central bank to cut its yuan reference rate by the most since August. Concern has deepened since the start of the year that a slowdown in the world’s second-biggest economy may be worse than anticipated.

After its worst-ever start to a year, the Stoxx 600 is heading for a weekly drop of 5.3 percent. That’s the biggest drop since August, when China’s yuan devaluation sparked a worldwide selloff in equities and saw Europe’s benchmark plunge as much as 18 percent from its record. Germany’s DAX Index, whose exporters have a greater exposure to China, entered a bear market at the time. It fell 2.7 percent to 9,940.2 today, trading below 10,000 for the first time since October.

Among stocks active on corporate news, Dialog Semiconductor Plc slid 7.4 percent after a person familiar with the matter said Microchip Technology Inc. is reconsidering its interest in Atmel Corp. Atmel agreed in September to acquire Dialog.

Source: Bloomberg

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