US STOCKS-Wall Street reels under China shock

lunes 4 de enero de 2016 14:02 GYT

* China and U.S. factory activity shrank in December

* Dow makes worst start to the year since 1932

* Amazon top drag on S&P

* Indexes down: Dow 2.48 pct, S&P 2.37 pct, Nasdaq 2.81 pct (Updates to early afternoon)

By Abhiram Nandakumar

Jan 4 (Reuters) - The Dow Jones industrial average was set for its worst start to a year since 1932 as stock markets tanked after weak Chinese economic data reignited fears of a global slowdown.

Surveys showed factory activity in the world's second-largest economy shrank sharply in December, sparking a 7 percent slide in Chinese shares that triggered a trading halt.

Adding to investors' worries, China's central bank fixed the yuan at a 4-1/2 year low, further weakening it against the dollar.

U.S. data was also not encouraging, with factory activity shrinking unexpectedly in December, according to the Institute for Supply Management.   Continuación...