Heavy loses in China stocks, European markets open flat


28 December, AtoZForex.com, London – Currency investors appeared too relaxed from the Christmas season with European markets open flat on Monday. Instead of following China’s market rout, the markets remained calm and subdued ahead of a light economic week.

European stocks

Germany’s DAX 30 index declined by 0.05% to 10,763.06 at the market open, meanwhile the UK’s FTSE 100 index increased by 0.06% to 6,209.5.

Among the other indices, the French CAC 40 index rose 0.09% to 4,671.8, while the pan-European Euro Stoxx 50 index fell by 0.36% to 3,284.5.

Overall, retentively calm start in a environment with low volatility.

Chinese stocks

Stocks in Asia, on the other hand, saw heavy losses as investors unwound their trades before the turn of the year. The Shanghai Composite closed with a loss of 2.59% at 3,533.78, while the Hang Seng was 0.95% lower at 21,919.62.

Renewed fears about the slowing economic outlook for China were compounded by November industrial prints which indicated sinking profits and a sixth consecutive monthly decline.

Crude oil

International Brent and US crude futures battled for a premium but both benchmarks fell in an environment of oversupply.

The international oil futures benchmark Brent was at $37.58 a barrel at this morning, down 31 cents. US West Texas Intermediate (WTI) futures were also 47 cents lower at $37.63 per barrel.

Consider reading further: Oil will boost CAD

Economic calendar

As the economic calendar will be relatively calm this week and as we step into 2016 on Thursday night, we could expect the trading interest to be limited resulting in low liquidity.

On Tuesday, CB Consumer Confidence will show how Americans are feeling ahead of the turn of the year. The indicator of consumer spending is estimated to increase from 90.4 to 93.9 as moods should be lifted during Christmas.

Rebounding from bottom low of $35, Crude oil will benefit from… See full calendar here

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