Global Stocks Fall Following Rout in Chinese Market

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Hope everyone enjoyed the Holidays. Now things get real again.

(From The Wall Street Journal)

Global stocks started 2016 with a sharp selloff as fresh signs of economic slowdown in China deepened fears about global growth and lowered hopes for a better year.

Weaker-than-expected manufacturing data and a falling currency triggered a 7% fall in mainland Chinese stocks that led authorities to halt trading there for the rest of the day.

Meanwhile, rising tensions in the Middle East added to bearish sentiment across markets and sparked volatile trading in oil, offering a further glimpse of the themes investors say are likely to influence markets this year.

By the way, those “rising tensions” can be seen below as Iranians (presumably with official OK) storm and burn the Saudi embassy in Tehran. This is not a good development. The Saudis have cut diplomatic ties and have said that they “don’t care” if it angers the White House.