US stocks mixed on China slump
January 11, 2016, 8:40 pm

The weakening in Chinese markets – and drop in oil prices – has investors scratching their heads about 2016 prospects [Xinhua]

Half-way through trading on Monday, it appeared that US stocks would stabilize and regain some ground lost last week.

By 3:30pm EST, the Dow Jones Industrial average, which had slid back in the red at 0.39 per cent down at 16,286, regained momentum and rose to 16,437 – or a gain of 0.541 per cent over Friday’s close.

The Nasdaq Composite, which had opened down almost two per cent at 4,573 regained some traction after noon trading and appeared to be the best performer on Monday.

Just before Monday’s close, it was 4,647 – up 0.07 per cent since Friday’s close.

The Nasdaq has fallen by about six per cent in the past week.

The S&P 500, meanwhile, opened at 1,926 and fell to 1,905 – or 0.87 per cent – by 3pm EST on Monday before heading upward again to 1,924 shortly before close of trade.

In London, the FTSE closed down 0.69 per cent while Japan’s Nikkei was in the red 0.39.

For the second week of 2016, global stocks have been rocked by fears that China’s slowdown is worse than previously thought, particularly in regards to manufacturing output.

On Monday, the benchmark Shanghai Composite Index closed down 5.33 per cent. It is down 8.5 per cent since January 4.

Exacerbating market jitters is the continuing fall of oil prices.

On Monday, the US benchmark West Texas Intermediate crude oil fell drastically by 6.5 per cent to $31.02 a barrel.

That’s a plummet of more than 10 per cent in just one week, sitting at a 12-year low.

International benchmark Brent Crude fell to $32.05 on Monday, the lowest level since 2004.

The BRICS Post with inputs from Agencies