U.S. stocks tumbled to start 2016, as a rout in Chinese equities renewed concern that an economic slowdown there will damp global growth.

Investors returning to the market after the New Year holiday faced a worldwide selloff sparked by weak factory data in China, while a reading that showed the fastest contraction in U.S. manufacturing in six years bolstered anxiety that slowing growth in the world's second-largest economy is spreading. A flareup in tension between Saudi Arabia and Iran added to the unease.

The Standard & Poor's 500 Index fell 1.5 percent to 2,012.98 at 4 p.m. in New York, after sliding as much as 2.7 percent, for its worst start to a year since 2001.

Trading was halted in China after a 7 percent drop in the CSI 300 Index of large-capitalization companies listed in Shanghai and Shenzhen amid deteriorating manufacturing data. Chinese policy makers, who went to unprecedented lengths to prop up stock prices during a summer rout, are trying to prevent financial-market volatility from weighing on economy set to grow at its weakest annual pace since 1990.

S&P Dow Jones Indices data indicate the first day of trading has no predictive power for the rest of the year. The index ends the year in the same direction it takes on the opening day 50.6 percent of the time, the data show. The first month of the year has proved more telling -- the gauge's return in January determines its direction for the year 72.4 percent of the time.

After scaling new peaks and enduring its worst selloff in four years, the main U.S. equity index ended 2015 0.7 percent lower. Investor sentiment wavered last year between optimism that the economy was strong enough to handle higher borrowing costs and concern that China's slowdown will hurt global growth, which exacerbated weakness in commodity prices and raw-material stocks.

The beginning of 2015 was also rocky, with the benchmark index dropping 2.7 percent in its first three sessions, followed by a two-day, 3 percent rally before eventually finishing January down 3.1 percent.

Meanwhile, investment strategies premised on buying shares based on their momentum just posted the best year since 2007, which isn't great news for bulls. Past instances when momentum stocks -- defined as the ones showing the biggest gains in the last six to 12 months -- won have occurred closer to the end of rallies than the beginning, signaling indiscriminate buying at a time when more traditional share drivers such as earnings growth are starting to wane.

Polish equity market closed lower on the first trading day of 2016. The broad market measure, the WIG Index, posted a 2.39% decline. Almost all sectors in the WIG produced losses. Media sector (+0.18%) was the only exception. At the same time, materials (-5.96%) and oil and gas sector (-3.77%) posed the worst results.

The large-cap stocks' measure, the WIG30 Index, fell by 2.80%. Media group CYFROWY POLSAT (WSE: CPS) was the sole advancer among the index's components. The stock gained 0.57%. At the same time, copper producer KGHM (WSE: KGH) was the index's sharpest decliner, slumping 6.27% on news that the company may need to run asset impairment tests due to continued low commodities prices. It was followed by footwear retailer CCC (WSE: CCC), tumbling 5.74% on reported weak sales results for December. Other most prominent losers were oil refiner PKN ORLEN (WSE: PKN), genco ENEA (WSE: ENA) and FMCG wholesaler EUROCASH (WSE: EUR), plunging by 4.27%, 4.25% and 3.94% respectively.

San Francisco Fed President John Williams said in an interview with CNBC on Monday that he expects the Fed to raise its interest rate three to five times this year.

He also said that he expects the U.S. economy to grow about 2% to 2.25% and inflation to increase toward the Fed's 2% target.

Williams noted that he was not concerned about the weak economic data from China.

Stock indices traded lower on the weaker-than-expected Chinese Markit/Caixin manufacturing purchasing managers'

Stock indices closed lower on the weaker-than-expected Chinese Markit/Caixin manufacturing purchasing managers' index (PMI). The Chinese Markit/Caixin manufacturing PMI declined to 48.2 in December from 48.6 in November, missing expectations for a reading of 49.0. Production fell in December, partly driven by a further drop in total new work. Companies continued to shed their staff.

Meanwhile, the economic data from Eurozone was mixed. Destatis released its consumer price data for Germany on Monday. German preliminary consumer price index decreased 0.1% in December, missing expectations for a 0.2% rise, after a 0.1% increase in November.

On a yearly basis, German preliminary consumer price index declined to 0.3% in December from 0.4% in November, missing expectations for a rise to 0.6%.

Markit Economics released its final manufacturing purchasing managers' index (PMI) for the Eurozone on Monday. Eurozone's final manufacturing purchasing managers' index (PMI) rose to 53.2 in December from 52.8 in November, up from the preliminary reading of 53.1.

Production and employment grew in all countries.

"The end of 2015 saw the Eurozone manufacturing recovery gain further traction, with rates of expansion in production and new orders over the final quarter besting those of quarter three. The sector is therefore likely to make a meaningful positive contribution to the euro GDP numbers for quarter four," Rob Dobson, Senior Economist at Markit said.

Germany's final manufacturing purchasing managers' index (PMI) climbed to 53.2 in December from 52.9 in November, up from the preliminary reading of 53.0.

The index was driven by a rise in production and new orders. New export orders showed the strongest rise in nearly two years.

France's final manufacturing purchasing managers' index (PMI) rose to 51.4 in December from 50.6 in November, down from the preliminary reading of 51.6. It was the highest level since March 2014.

The index was driven by a rise in output and new orders.

Markit Economics released its manufacturing purchasing managers' index (PMI) for the U.K. on Monday. The Markit/Chartered Institute of Procurement & Supply manufacturing PMI for the U.K. declined to 51.9 in December from 52.5 in November. November's figure was revised down from 52.7.

A reading above 50 indicates expansion.

The decline was driven by a slower pace of the growth in output and new orders.

"The UK manufacturing sector ended 2015 on a disappointing note, with its rate of growth slowing further from October's recent high back down towards the stagnation mark. This suggests that industry will make, at best, only a marginal positive contribution to broader economic growth in the final quarter of the year," Markit's Senior Economist Rob Dobson said.

The Bank of England (BoE) released its number of mortgages approvals for the U.K. on Monday. The number of mortgages approvals in the U.K. was up to 70,410 in November from 69,867 in October, exceeding expectations for an increase to 70,400. October's figure was revised up from 69,630.

Consumer credit in the U.K. rose by £1.476 billion in November, after a £1.207 billion gain in October. October's figure was revised down from £1.178 billion.

Net lending to individuals in the U.K. increased by £5.35 billion in November, after a £4.8 billion gain in October.

Indexes on the close:

Name Price Change Change %

FTSE 100 6,093.43 -148.89 -2.39 %

DAX 10,283.44 -459.57 -4.28 %

CAC 40 4,522.45 -114.61 -2.47 %

Major U.S. stock indexes tumbled about 2,5% on Monday - the first trading day of the year - after weak Chinese economic data reignited fears of a global slowdown. Mainland Chinese shares fell 7%, triggering a new circuit breaker that prompted a trading halt, after surveys showed factory activity in the world's second largest economy shrank sharply in December.

All Dow stocks in negative area (19 of 30). Top looser - Cisco Systems, Inc. (CSCO, -4,49%).

All S&P sectors also in negative area. Top looser - Services (-3.0%).

At the moment:

Dow 16889.00 -452.00 -2.61%

S&P 500 1985.25 -50.25 -2.47%

Nasdaq 100 4445.00 -142.75 -3.11%

Oil 36.57 -0.47 -1.27%

Gold 1075.10 +14.90 +1.41%

U.S. 10yr 2.21 -0.06

Royal Bank of Canada (RBC), the Supply Chain Management Association (SCMA) and Markit Economics released their RBC Canadian manufacturing PMI on Monday. The index declined to 47.5 in December from 48.6 in November. It was the lowest level since October 2010.

The decline was driven by falls in output volumes and new business.

"Business conditions in the Canadian manufacturing sector fell at a survey-record pace in December as weaker domestic demand and ongoing uncertainty in the energy sector continues to take its toll," RBC senior vice-president and chief economist, Craig Wright, said.

The U.S. Commerce Department released construction spending data on Monday. Construction spending in the U.S. declined 0.4% in November, missing expectations for a 0.5% gain, after a 0.3% increase in October. It was the biggest decline since June 2014.

October's figure was revised down from a 1.0% rise.

The data from January 2005 through October 2015 was revised by the U.S. government.

The drop was mainly driven by a fall in non-residential construction, which was down 0.8% in November.

Spending on private residential construction climbed 0.2% in November.

Spending on private construction decreased 0.2% in November, while public construction spending slid 1.0%.

The Institute for Supply Management released its manufacturing purchasing managers' index for the U.S. on Monday. The index declined to 48.2 in December from 48.6 in November, missing expectations for a rise to 49.0. It was the lowest level since June 2009.

A reading above 50 indicates expansion, below indicates contraction.

The decline was partly driven by a fall in employment. The employment index dropped to 48.1 in December from 51.3 in November.

The production index increased to 49.8 in December from 49.2 in November.

The new orders index rose to 49.2 in December from 48.9 in November.

The price index was down to 33.5 in December from 35.5 in November.

Markit Economics released its final manufacturing purchasing managers' index (PMI) for the U.S. on Monday. The U.S. final manufacturing purchasing managers' index (PMI) decreased to 51.2 in December from 52.8 in November, down from the previous estimate of 51.3. It was the lowest level since October 2012.

A reading above 50 indicates expansion in economic activity.

The index was driven by a slower pace of growth in output and new business, while input costs fell.

"The strong dollar is hurting exporters as well as hitting domestic sales as firms compete against inflows of cheap imports. Low oil prices are meanwhile hitting demand for goods and machinery from the energy sector. There are signs that consumers are becoming more cautious in relation to spending as interest rates lift off their historic lows, and overseas demand remains in the doldrums. All of these factors look set to continue to hurt manufacturers, and even intensify, in coming months," Markit's Chief Economist Chris Williamson said.

U.S. stock-index futures declined.

Global Stocks:

Nikkei 18,450.98 -582.73 -3.06%

Hang Seng 21,327.12 -587.28 -2.68%

Shanghai Composite 3,296.54 -242.64 -6.86%

FTSE 6,100.18 -142.14 -2.28%

CAC 4,529.98 -107.08 -2.31%

DAX 10,304.38 -438.63 -4.08%

Crude oil $37.64 (+1.62%)

Gold $1076.50 (+1.54%)

The Saudi Arabian government said on Sunday that it had broken off diplomatic ties with Iran. The government has given Iranian diplomats two days to leave Saudi Arabia.

Bahrain and Sudan joined Saudi Arabia and cut ties with Iran.

The United Arab Emirates said that it would downgrade its diplomatic team in Iran.

The situation escalated after Saudi Arabia executed a Shia Muslim cleric.

Markit Economics released its manufacturing purchasing managers' index (PMI) for Italy on Monday. Italy's manufacturing purchasing managers' index (PMI) climbed to 55.6 in December from 54.9 in November. It was the highest level since March 2011.

The increase was driven by rises in output, new orders and employment.

"A weak euro, recovering domestic demand and falling global commodity prices have provided the necessary tailwinds to get things moving. The goods-producing sector has solid momentum heading into the New Year, with new order growth accelerating and companies taking on new staff to cope with rising production requirements," Markit economist Phil Smith said.

(company / ticker / price / change, % / volume)

Markit Economics released its final manufacturing purchasing managers' index (PMI) for Greece on Monday. Greece's manufacturing purchasing managers' index (PMI) climbed to 50.2 in December from 48.1 in November.

The index was driven by a rise in production.

"The improvement in business conditions was propped up by a modest expansion in output, something manufacturers have not experienced during 2015. The increase in workforce numbers, albeit fractional, has also helped to resuscitate the sector," Markit economist Samuel Agass said.

Upgrades:

McDonald's (MCD) upgraded to Buy at Nomura

Deere (DE) upgraded to Neutral from Sell at UBS

Downgrades:

Amazon (AMZN) downgraded to Neutral from Buy at Monness Crespi & Hard

Other:

Markit Economics released its manufacturing purchasing managers' index (PMI) for Spain on Monday. Spain's manufacturing purchasing managers' index (PMI) declined to 53.0 in December from 53.1 in November.

The index was driven by a faster pace of production growth and new orders, while input costs continued to decline.

"The latest Spanish manufacturing PMI data signalled a solid end to 2015 for the sector as growth rates for output and new orders continued to accelerate following a brief slowdown around the end of Q3," a senior economist at Markit Andrew Harker said.

Destatis released its consumer price data for Germany on Monday. German preliminary consumer price index decreased 0.1% in December, missing expectations for a 0.2% rise, after a 0.1% increase in November.

On a yearly basis, German preliminary consumer price index declined to 0.3% in December from 0.4% in November, missing expectations for a rise to 0.6%.

The annual increase was mainly driven by a rise in services prices, which were up 1.2% year-on-year in December.

Goods prices dropped 0.6% year-on-year in December, driven by a decline in energy prices. Energy prices slid 6.5% year-on-year in December.

Stock indices traded lower on the weaker-than-expected Chinese Markit/Caixin manufacturing purchasing managers' index (PMI). The Chinese Markit/Caixin manufacturing PMI declined to 48.2 in December from 48.6 in November, missing expectations for a reading of 49.0. Production fell in December, partly driven by a further drop in total new work. Companies continued to shed their staff.

Meanwhile, the economic data from Eurozone was positive. Markit Economics released its final manufacturing purchasing managers' index (PMI) for the Eurozone on Monday. Eurozone's final manufacturing purchasing managers' index (PMI) rose to 53.2 in December from 52.8 in November, up from the preliminary reading of 53.1.

Production and employment grew in all countries.

"The end of 2015 saw the Eurozone manufacturing recovery gain further traction, with rates of expansion in production and new orders over the final quarter besting those of quarter three. The sector is therefore likely to make a meaningful positive contribution to the euro GDP numbers for quarter four," Rob Dobson, Senior Economist at Markit said.

Germany's final manufacturing purchasing managers' index (PMI) climbed to 53.2 in December from 52.9 in November, up from the preliminary reading of 53.0.

The index was driven by a rise in production and new orders. New export orders showed the strongest rise in nearly two years.

France's final manufacturing purchasing managers' index (PMI) rose to 51.4 in December from 50.6 in November, down from the preliminary reading of 51.6. It was the highest level since March 2014.

The index was driven by a rise in output and new orders.

Markit Economics released its manufacturing purchasing managers' index (PMI) for the U.K. on Monday. The Markit/Chartered Institute of Procurement & Supply manufacturing PMI for the U.K. declined to 51.9 in December from 52.5 in November. November's figure was revised down from 52.7.

A reading above 50 indicates expansion.

The decline was driven by a slower pace of the growth in output and new orders.

"The UK manufacturing sector ended 2015 on a disappointing note, with its rate of growth slowing further from October's recent high back down towards the stagnation mark. This suggests that industry will make, at best, only a marginal positive contribution to broader economic growth in the final quarter of the year," Markit's Senior Economist Rob Dobson said.

The Bank of England (BoE) released its number of mortgages approvals for the U.K. on Monday. The number of mortgages approvals in the U.K. was up to 70,410 in November from 69,867 in October, exceeding expectations for an increase to 70,400. October's figure was revised up from 69,630.

Consumer credit in the U.K. rose by £1.476 billion in November, after a £1.207 billion gain in October. October's figure was revised down from £1.178 billion.

Net lending to individuals in the U.K. increased by £5.35 billion in November, after a £4.8 billion gain in October.

Current figures:

Name Price Change Change %

FTSE 100 6,103.76 -138.56 -2.22 %

DAX 10,342.67 -400.34 -3.73 %

CAC 40 4,523 -114.06 -2.46 %

Credit Suisse and procure.ch released their manufacturing purchasing managers' index (PMI) for Switzerland on Monday. The manufacturing purchasing managers' index in Switzerland climbed to 52.1 in December from 49.7 in November.

A reading above 50 indicates contraction.

The increase was largely driven by a rise in production. The production increased to 57.6 in December from 49.5 In November.

Purchase prices decreased to 36.8 in December from 38.4 in November, while the backlog of orders sub-index fell to 51.4 from 51.5.

Employment rose to 44.7 in December from 43.9 in November.

The Bank of England (BoE) released its number of mortgages approvals for the U.K. on Monday. The number of mortgages approvals in the U.K. was up to 70,410 in November from 69,867 in October, exceeding expectations for an increase to 70,400. October's figure was revised up from 69,630.

Consumer credit in the U.K. rose by £1.476 billion in November, after a £1.207 billion gain in October. October's figure was revised down from £1.178 billion.

Net lending to individuals in the U.K. increased by £5.35 billion in November, after a £4.8 billion gain in October.

Markit Economics released its manufacturing purchasing managers' index (PMI) for the U.K. on Monday. The Markit/Chartered Institute of Procurement & Supply manufacturing PMI for the U.K. declined to 51.9 in December from 52.5 in November. November's figure was revised down from 52.7.

A reading above 50 indicates expansion.

The decline was driven by a slower pace of the growth in output and new orders.

"The UK manufacturing sector ended 2015 on a disappointing note, with its rate of growth slowing further from October's recent high back down towards the stagnation mark. This suggests that industry will make, at best, only a marginal positive contribution to broader economic growth in the final quarter of the year," Markit's Senior Economist Rob Dobson said.

Markit Economics released its final manufacturing purchasing managers' index (PMI) for France on Monday. France's final manufacturing purchasing managers' index (PMI) rose to 51.4 in December from 50.6 in November, down from the preliminary reading of 51.6. It was the highest level since March 2014.

The index was driven by a rise in output and new orders.

"The French manufacturing sector maintained its recent modest growth momentum at the end of 2015, with the headline PMI climbing to its highest level since early-2014. Falling commodity prices gave manufacturers scope to cut their output charges further, which they will hope will support continued growth in new orders early in the New Year," Markit Senior Economist Jack Kennedy said.

Markit Economics released its final manufacturing purchasing managers' index (PMI) for Germany on Monday. Germany's final manufacturing purchasing managers' index (PMI) climbed to 53.2 in December from 52.9 in November, up from the preliminary reading of 53.0.

The index was driven by a rise in production and new orders. New export orders showed the strongest rise in nearly two years.

"Reflective of the trend observed throughout 2015, the Germany Manufacturing PMI posted above the nochange mark of 50.0 in December, thereby signalling sustained growth in the sector. New order intakes continued to grow at a healthy rate, with demand for consumer goods particularly strong and exports showing the largest monthly rise since February 2014," Markit economist Oliver Kolodseike said.

Markit Economics released its final manufacturing purchasing managers' index (PMI) for the Eurozone on Monday. Eurozone's final manufacturing purchasing managers' index (PMI) rose to 53.2 in December from 52.8 in November, up from the preliminary reading of 53.1.

Production and employment grew in all countries.

"The end of 2015 saw the Eurozone manufacturing recovery gain further traction, with rates of expansion in production and new orders over the final quarter besting those of quarter three. The sector is therefore likely to make a meaningful positive contribution to the euro GDP numbers for quarter four," Rob Dobson, Senior Economist at Markit said.

The Chinese Markit/Caixin manufacturing PMI declined to 48.2 in December from 48.6 in November, missing expectations for a reading of 49.0.

Production fell in December, partly driven by a further drop in total new work. Companies continued to shed their staff.

"The Caixin China General Manufacturing PMI for December is 48.2, down 0.4 points from the reading for November. This shows that the forces driving an economic recovery have encountered obstacles and the economy is facing a greater risk of weakening. More fluctuations in global markets are expected now that the U.S. Federal Reserve has started raising interest rates," Dr. He Fan, Chief Economist at Caixin Insight Group, said.

The final Markit/Nikkei manufacturing Purchasing Managers' Index (PMI) for Japan remained unchanged at 52.6 in December, up from the preliminary reading of 52.5.

A reading above 50 indicates expansion, a reading below 50 indicates contraction of activity.

The index was driven by a rise in new orders and output.

"Manufacturing conditions continued to improve at a marked rate in December, contributing to the strongest PMI quarterly average seen since Q1 in 2014. This suggests that the official GDP figure for Q4 2015 will signal some growth. As a result of sharp expansions in both manufacturing production and new orders, employment and buying activity increased further," economist at Markit, Amy Brownbill, said.

U.S. stock indices declined on the last session of 2015 on Thursday.

The Dow Jones Industrial Average fell 178.84 points, or 1.02%, to 17,425.03 (-2.23% over the year). The S&P 500 lost 19.42 points, or 0.94%, to 2,043.94 (-0.73% over the year; its energy sector lost more than 20% in 2015 although it was the only sector, which gained on Thursday). The Nasdaq Composite declined 58.43 points, or 1.15%, to 5,007.41(more than +5.5% over the year).

U.S. stocks were mostly tracking oil in the last two trading weeks of 2015 as uncertainty over Federal Reserve's rates cleared out.

This morning in Asia Hong Kong Hang Seng fell 2.53%, or 554.35, to 21,360.05. China Shanghai Composite Index dropped 4.76%, or 168.39, to 3,370.80. The Nikkei plunged 2.89, or 550.62, to 18,483.09.

Asian stock indices fell amid tensions between Iran and Saudi Arabia and weak economic data from China. On Sunday Saudi Arabia cut diplomatic relations with Tehran.

The Markit/Caixin Manufacturing PMI for China declined to 48.2 in December from 48.6 in the previous month falling further into contraction territory. Economists had expected a reading of 49.0. Many experts don't expect China's economic growth to exceed 6.5% in 2016.

(index / closing price / change items /% change)

Nikkei 225 19,033.71 +51.48 +0.27 %

Hang Seng 21,914.4 +32.25 +0.15 %

Shanghai Composite 3,539.6 -33.28 -0.93 %

FTSE 100 6,242.32 -31.73 -0.51 %

CAC 40 4,637.06 -40.08 -0.86 %

Xetra DAX 10,743.01 -117.13 -1.08 %

S&P 500 2,043.94 -19.42 -0.94 %

NASDAQ Composite 5,007.41 -58.43 -1.15 %

Dow Jones 17,425.03 -178.84 -1.02 %