Wall Street opened with a sharp downturn on Tuesday after newly released official data revealed that China’s manufacturing sector had shrank at its fastest pace in three years, reports Reuters.
The International Monetry Fund (IMF) head Christine Lagarde, commenting after the release of data on China’s shrinking manufacturing market, said global economic growth was now likely to be weaker than had been expected.
Oil prices also fell sharply in response to China’s newly released data.
The Bank of America Merrill Lynch said it was lowering tis 2016 and 2017 crude oil projections because growth was slowing whilst oil production costs were falling.
The bank added,
“Growth concerns around China, coupled with the expectation of increased Iranian output in 2016, have temporarily driven oil prices even lower than we anticipated.”
The International Monetry Fund (IMF) head Christine Lagarde, commenting after the release of data on China’s shrinking manufacturing market, said global economic growth was now likely to be weaker than had been expected.
Oil prices also fell sharply in response to China’s newly released data.
The Bank of America Merrill Lynch said it was lowering tis 2016 and 2017 crude oil projections because growth was slowing whilst oil production costs were falling.
The bank added,
“Growth concerns around China, coupled with the expectation of increased Iranian output in 2016, have temporarily driven oil prices even lower than we anticipated.”