Full report is available here.

Summary
  • The global economy entered into 2016 on a wobbly footing, with China sending jitters around the world. China’s economy in 2015 grew 6.9%, the slowest pace in 25 years. The world's second biggest economy saw a difficult start to the current year, which included financial markets closure on two occasions as steep declines of more than 7% triggered market circuit breakers and a halt to trading. These developments had a devastating impact on business and consumer sentiment in January.
  • It came as no surprise that the Asia-Pacific region experienced massive declines in both short and long term sentiment indexes, with the three-year gauge plummeting to the lowest level since records began in November 2011. Given the weight the Chinese economy has on the global economic arena, future development in the world’s second biggest economy will continue to determine central banks’ monetary policy decisions, and effect market participants’ risk appetite, business and consumer confidence.
  • Europe, in contrast, was a bright spot in Dukascopy Bank January report, as both readings climbed in the measured month.
  • North America saw mixed results in January, as the six-month sentiment index inched down slightly, while the three-year measure rebounded.
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