- European markets drop, with Germany’s DAX falling 1.1% and Britain’s FTSE 100 down 0.3%.
- Hong Kong’s Hang Seng rises due to positive tech stock movements, driven by AI startup news.
- China’s manufacturing PMI slips, signaling potential economic slowdown as export orders decline.
World markets are mostly down today, with European stocks taking a hit following a pullback in U.S. equities from their all-time highs. Germany’s DAX, France’s CAC 40, and the UK’s FTSE 100 are all in negative territory as investors remain cautious.
However, Hong Kong’s Hang Seng index bucked the trend with a gain of 0.7%, thanks to a surge in shares of Alibaba and Baidu. The boost is attributed to the positive outlook surrounding a Chinese artificial intelligence startup, DeepSeek, which promises lower investment costs compared to other AI models.
Mixed Global Market Movements Amid Tech Gains and Economic Concerns
U.S. stocks eased off their record highs, causing global equity markets to dip, particularly in Europe. The German DAX, French CAC 40, and British FTSE 100 all saw declines in early trading, reflecting investor caution amid the pullback in U.S. markets. Futures for major indices like the S&P 500 and Dow Jones indicate continued weakness.
The Chinese stock market had a mixed day. While Hong Kong’s Hang Seng rose, driven by gains in technology stocks like Alibaba and Baidu, the Shanghai Composite suffered a slight decline. A key factor for the Hang Seng’s boost was a new AI development by DeepSeek, a startup that requires significantly lower investment than other AI companies.
Meanwhile, in mainland China, economic concerns are mounting. A recent survey revealed that manufacturing activity, particularly export orders, has weakened. The official purchasing managers’ index (PMI) for January slipped to 49.1, indicating contraction, and contributing to the decline of the Shanghai Composite index.
The Chinese slowdown could be temporary, with experts pointing to increased government spending to stimulate the economy. The timing also coincides with the lead-up to the Lunar New Year, a period when factories typically close, further impacting production and manufacturing output.
Markets are facing a mixed outlook, with European indices struggling and Asian markets divided. The impact of weaker manufacturing data in China and holiday effects could weigh on global economic sentiment in the short term.
“Markets are always evolving, but current events in China show how sensitive global markets can be to economic slowdowns and technological innovations.”
