Global equities fell after a rout in the Chinese stock market brought the economic slowdown concerns to the table again.

The CSI300 index plunged by 7% during the first trading day of the year, which triggers circuit breaker to close trading for the day.

In Europe, we saw several PMI figures releases this morning. Beginning with Spain, the Manufacturing PMI came out less than expected in December at 53.0, while most of analysts were waiting for 53.6.

In Italy, the Manufacturing PMI rose to 55.6 up from 54.9 in November and above expectations of 54.9.

Few minutes later, the German figures increased slightly during last month and registered 53.2 compared to 53.0 previously.

Moreover, the UK Manufacturing PMI declined to 51.9 in December down from revised numbers of 52.5. In the meantime, mortgage approvals exceeded estimates in November and increased to 70.4K compared to 69.8K forecasted. Finally, the money M4 supply fell to 0.4% down from 0.6% earlier.

In the Eurozone, the Manufacturing PMI came out slightly higher than expected at 53.2 against 53.1 estimated.

At 13.00 GMT time, traders were waiting for the German CPI figures. Both the preliminary MoM and YoY numbers missed estimates and came out at -0.1% and 0.3% respectively, way below analysts forecasts which were at 0.2% and 0.6% in December.

While in the United States, the manufacturing activity has contracted in the last month of 2015.

Last but not least, the ISM Manufacturing PMI slips to 48.2 down from 48.6 previously. Meanwhile, construction spending MoM declined to -0.4% in November compared to 0.3% in October.

Finally, ISM prices paid came out with a big disappointment as December figures were below expectations at 33.5 while forecasts were calling for 35.5 during last month.

Looking at the market reaction, the US Dollar traded higher against the majority of G10 currencies, except against the Japanese Yen, as the Japanese currency strengthened across the board due to the risk-off environment seen today in the market fueled by fears of a global economic recession.

USD/JPY has reached as low as 118.67 level during the U.S trading session today, before stabilizing around 119.40 level by this moment, losing as much as 1% in a single trading day.

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