Stock markets overseas are showing signs of stabilizing after a shocking plunge Monday. While concerns about China's economy remain, some analysts still expect a good year.
The poor manufacturing reports from China and the United States were among the triggers for the stock market selloff that started the new year.
On Tuesday, global markets remained weaker even as China's benchmark stock index stabilized after plunging nearly 7 percent Monday before being halted by new curbs that temporarily stop trading if markets move too fast.
**CBN News Financial contributor Stephen Moore offered his insights to the market forecast. Click here for his analysis.
U.S. stocks took a pounding on the first trading day of the year, with the Dow Jones industrial average closing down 276 points after falling nearly 470 points during the day.
The drop is causing some to wonder if 2016 will be the year the bull market ends.
Tim Anderson, managing director of TJM Investments, thinks he knows why investors were spooked: fears about China's market.
"When their market was extremely volatile in the summer, they put a six-month ban of selling stocks on very large holders, you might say. And that ban is set to come off very shortly," he explained.
The selloff was also pinned on Chinese manufacturing data that shrank for a 10th month. Nevertheless, many experts are still optimistic.
"Once we leave the first few weak days behind us, I'm certain that the DAX will gain significantly again this year because we still have low interest rates," Fidel Helmer, a stock analyst with Hauch & Aufhaeuser, said.
Meanwhile, tensions in the Middle East also have investors nervous.
Saudi Arabia severed diplomatic relations with Iran over the weekend in a dispute over the Saudis' execution of a Shiite cleric. Despite those concerns, oil prices are still staying low.
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