NEW YORK, USA - Weak Chinese data sparked a plunge in world stock markets on Monday however they have since recoverd.
According to vice president of trading of Tempus Inc John Doyle, weak Chinese import and export data now forces a risk-off strategy in the market.
Chinese data showed that exports fell by more than 4 percent in December amidst expectations of a 3 percent gain. The import data also fell by more than 7% with an expectation of a 5% increase. Along with the drop in oil prices, US tariffs on Chinese products, and no progress in the US-China trade talks, fear has become the main driver for bearish sentiment.
Chief Investment Officer at Personal Capital Craig Birk says a slowdown in the Chinese economy will have big consequences.
As of Monday, the Japanese yen was being bought up as a safe haven against the US dollar.