S&P/ASX 200 (INDEXASX: XJO) opened only slightly lower on yesterday but proceeded to lose over 1% in the first hour of trade.
At just after midday, the ASX200 is still down 1.00% or 58.3 points lower at 5,575.1 points.
Mid-Session 4 Jan 19: Market slumps following Wall St sell-off pic.twitter.com/pa5FUya3GQ— CommSec (@CommSec) January 4, 2019
Wednesday's Caixin Manufacturing PMI data release was a market mover
On Wednesday this week, China’s monthly Caixin Manufacturing PMI data point disappointed and sent markets down across Asia.
The Caixin Manufacturing PMI surveys over 400 purchasing managers in China’s manufacturing sector asking them to rate the relative level of business conditions.
It is considered a leading indicator of economic health and a score above 50.0 indicates expansion and below 50.0 indicates contraction.
Wednesday’s forecast was for 50.1 but the index score came in at 49.7 indicating contraction.
Caixin Services PMI data release today at 12.45pm
Today’s Caixin Services PMI surveys about 400 purchasing managers in China’s services industry.
The consensus forecast is for 52.9 and the data will be released at 12.45pm AEST.
It is not uncommon for these data releases to move the Australian market when the release is higher or lower than the consensus forecast.