Weak manufacturing data out of China, and escalating tensions in the Middle East are getting the blame for today’s global stock market selloff.
CKNW Financial Analyst Robert Levy says it’s not all bad news for the BC economy though.
“There will still be demand for the resources – which we develop here in British Columbia – but it’s sort of the growth in those markets where it does paint an uglier picture, and it’s a little bit sour. It’s the transition I think of the Chinese economy from manufacturing-based to more services-based. And there will be demand for Canadian products, and that’s why there’s optimism in sectors like technology here in Canada, because those might be the goods and services which we then develop and trade and offer to a Chinese ecomomy in a newer age.”
Levy says China is mostly the reason for the major dips in the New York Exchange, and the TSX in Toronto.
“And it’s largely what’s going on with China. People sort of have this perception that 2016 may be a new theme for the markets, but it’s certainly the trends we saw for 2015 which was a slowing emerging market economy, slowing China, is going to impact us here in North America and it’s the same story today when you have Chinese manufacturing data overnight becoming quite sour, they’re manufacturing base continuing to decline, it does way in the sentiment in North American markets and that’s why it paints sort of an ugly picture for the start of the New Year.”
At one point this morning the New York Exchange was down over 400 points and the TSX in Toronto was down more than 200 points.