Chinese Slowdown Fears Dominate Global Markets

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Chinese Slowdown Fears Dominate Global Markets
Chinese Slowdown Fears Dominate Global Markets

Chinese Slowdown Fears Dominate Global Markets

Global markets are down on Wednesday as fears of Chinese economic trouble and the situation in Eastern Europe weighs on investor sentiment.

Heading into European lunchtime, the FTSE 100 is down 55.84 points (0.84%), currently trading at 6,629.68. An overarching decline in the mining sector is putting pressure on the index, as well as the day’s biggest loser G4S PLC (GFS.L). G4S is currently down 6.24% for the day, trading at 229.70 after reporting a pre-tax loss of £170M for 2013 and a £108.9M fine from the UK government for the tagging fiasco last year.

In Germany, the DAX 30 is also down, trading at 9,199.06, a 1.17% discount on the index’s open. Leading the decline is the nation’s largest steelmaker ThyssenKrupp AG (TKA.DE), down 2.95% at 18.43 on reports of a failed sale of its railway and construction division that will necessitate shutdowns and job losses.**relatedarticle**

Across the channel, S&P 500 futures (March 14) are down 0.25% at 1,860.65, as are Dow 30 futures (March 14), currently down 0.41% at 16,651.25 as we head into the U.S. open.
Leading the global decline is the Japanese market, with the Nikkei 225 closing out Wednesday for a 393.72 point (2.59%) loss at 4,830.39. The decline comes as the Japanese cabinet office reports disappointing household confidence, down for the month at 38.3 versus a forecast of 40.3.

The Chinese economy is currently dominating investor sentiment, with a stream of worse than expected data coming out of the nation during the weekend and throughout Monday and Tuesday.

Traders and Investors will look to the Chinese industrial production figure, slated for release at 05:30 GMT on Thursday, to ease the tension. A better than expected report (>9.5) could relieve some of the downside pressure on the global markets and spark a light recovery heading into the weekend. A worse than expected figure on the other hand (<9.5), could reinforce speculation that the Chinese economy is slowing down and fuel a further sell off before the week’s close.

To contact the reporter of this story: Samuel Rae at samuel@forexminute.com