Equities start off 2016 with big sell-off

Stock across globe were sold off early in first day of global trading (some stock markets were open on Friday), for the new year. Over the weekend, release of weaker economic dockets from China and escalating tensions in Middle East might have contributed to the selloff.

Looking at rising Yen it can be seen that some elements of risk aversion do exist in the selloffs. Yen is up around 0.6% against Dollar trading at 119.5, below its interim support around 120. Dollar index, marginally down (-0.2%) against basket of currencies, while single currency managed to rise 0.2%.

China is leading the drop in Asia, down around -5.5% so far due to its weaker economic release again today. Caixin PMI came at 48.2, compared to 49 expected and 48.6 prior. Japan's Nikkei is down -3%, while Indian Nifty index is down little more than a percent.

S&P 500 future is pointing at -1.5% loss, trading at 2027.

Looking at the extent of selloffs, it seems, Europe is likely to be in red, some relief might come only as market moves toward North American session.

First day of the year selloffs and risk aversion on China is likely to be seen as bad omen by many in the market.