Weekly comment MM Prime TFI - January 11, 2016
Last week was dominated by the red color leading to the worst opening of a new year in history. The declines were caused by weak economic data from China. On Monday there was a release of the industrial PMI. It stood at 48.2 pts. to the expected 49.0 pts.. In addition, the services PMI unexpectedly failed (50.2 pts. vs 52.3 pts. expected). This data indicated a slowdown in Chinese economy. Moreover, accompanying strong pressure, which was resulted from the expected expiration of regulation that restricted the sale of shares by investors holding at least 5% equity stake in the company, led to the increase of tension in the markets and even panic.