China’s stock markets tumbled again on Monday with the Shanghai Composite Index and the CSI 300 index tumbling more than 5 percent after a 10 percent plunge last week. Volatility in Chinese shares fuelled a rout in global equities last week that wiped out about $2.5 trillion of market capitalizations worldwide. Meanwhile, the central bank guided China’s yuan higher; after the currency’s swift, weakening last week triggered global selling.
Oil prices started the week on weak amid lingering concerns over China turmoil. Brent, the global benchmark, fell 2.1 percent to $33.23 a barrel in London, while West Texas Intermediate (WTI), the U.S. benchmark, lost 1.3 percent to $32.72 a barrel in New York. Worries over volatility in Chinese markets along with China’s slowing economic activity continued to weigh heavily on prices.
The Sentix investor sentiment index for the Eurozone fell to 9.6 in January from 15.7 in December. Economists had forecast a drop to 11.8. Reasons for the decline included concerns surrounding the Chinese economy. The current situation index dropped to 13 from 13.5 in December, while the expectations index decreased sharply to 6.3 points from 18.
Decreasing for the third consecutive month, Denmark’s industrial production fell 0.9 percent (m/m sa) in November, following a 2.4 percent decline in October. Production fell in the transport equipment industry and pharmaceutical industry.
East Asia and Pacific
China’s inflation rate edged up to 1.6 percent (y/y) in December, matching economists’ forecasts, from the 1.5 percent rise in November. Food prices increased 2.7 percent while non-food cost rose at a slower 1.1 percent. Cost of consumer goods gained 1.5 percent and those of services advanced 2.1 percent.
Indonesia’s retail sales rose 10.2 percent in November, following a downwardly revised 8.7 percent rise in October. It is the highest figure since July, mainly driven by higher sales of food, beverages and tobacco.
Europe and Central Asia
Albania’s GDP rose 2.98 percent (y/y) in Q3 following Q2’s upwardly revised 2.96 percent expansion. Output increases in the construction sector, professional services and administrative services supported the modest acceleration.
Tanzania’s GDP advanced 6.3 percent (y/y) in Q3, compared to a 7.9 percent expansion in Q2. Agriculture production slowed due to worsened weather conditions while construction, transport and storage, public administration and defense, and mining and quarrying expanded the most.
source: The Global Daily