US open: Dow plunges over 150 points as selloff continues amid China worries

US equities slid on Friday, as unimpressive data out of China weighed on sentiment.

Jut after 1500 BST, the Dow Jones Industrial was down 150 points to 16,840.30, while the S&P 500 and the Nasdaq were 18 and 55 points lower respectively, with the latter falling below the 200-day moving average for the first time in 10 months.

Chinese stocks slump

Chinese stocks fell after a key manufacturing index deepened concerns over China’s growth, with the Shanghai Composite down by 4.27%, just a touch above its 8 July low, while the Shenzhen index fell by 5.39% and the start-up focused ChiNext index was 6.65% weaker.

“Throughout the past year China has been very aggressive in its stimulus schemes, but they still aren’t enough to sustain high levels of growth,” said IG’s analyst David Madden.

“The only option for Beijing will be additional monetary easing which will effectively put the brakes on the US recovery.”

Elsewhere, European stocks also declined on concerns over China, while news of snap elections in Greece also undermined sentiment.

The dollar was broadly flat against the pound but fell 0.72% against the yen and 0.52% against the euro, while gold futures climbed 0.39% to $1,157.70.

Oil prices declined, with West Texas Intermediate losing 0.40% to $41.16 a barrel, and Brent down 1.22% to $46.06 a barrel.

Friday data

The Markit flash Purchasing Managers’ Index declined from 53.8 in July to 52.9 in August, compared with expectations for an unchanged reading.

The index, however, was comfortably above the 50 threshold that indicates expansion.

“August’s survey highlights a lack of growth momentum and continued weak price pressures across the U.S. manufacturing sector, which adds some fuel to the dovish argument as policymakers weigh up tightening policy in September,” said Markit’s senior economist Tim Moore.

In company news, software provider Salesforce.com jumped 4.39% after lifting its full-year outlook late on Thursday.

The group also posted earnings that topped analysts’ expectations.

Clothing retailer Gap slid 1.29% despite posting in line with expectations, while computer maker Hewlett Packard fell 2.01% after revealing a 15th decline in revenue in the last 16 quarters.