Here's what you need to know in markets for Monday. China's manufacturing activity contracted. The country's factory sector unexpectedly shrank in January for the first time in more than two years as official statistics showed the Purchasing Managers' Index (PMI) fell to 49.8. "China still needs decent growth to add 100 million new jobs this year, plus China is entering a rapid disinflation process," ANZ economists said in a note, according to Reuters. Oil workers strike across the US. The United Steelworkers stopped work at nine US oil refineries and chemical plants early Sunday, the biggest walkout since 1980, after failing to reach an agreement on a labour contract. Carl Larry, Houston-based director of oil and gas at Frost & Sullivan told Bloomberg: “There will be a knee-jerk reaction in gasoline and diesel prices because we don’t know how long this is going to be or how extended it might be. It’ll be bearish for crude, but we’ve already accounted for a lot of the fact that refineries are maintenance.” Croatia writes off debt for thousands. The debts of around 60,000 citizens will be wiped out as part of the "fresh start" government scheme, which could cost creditors as much as 2.1 billion kuna (£204.3 million; $319.26 million). Oil prices are tanking. Oil prices fell early Monday reversing last week's surge after US unions called a strike at refineries and chemical plants. Asian markets are down. Stocks are down after data showed China's manufacturing shrank last month. Japan's Nikkei closed down 0.66% and Hong Kong's Hang Seng is currently down 0.47%. Greece will reject more loans. Greece's newly appointed finance minister Yanis Varoufakis said on Sunday the country would not ask for any more loans under its existing €240 billion (£179 billion; $270 billion) bailout agreement and that he wanted to reach a new deal with international creditors by the end of May. Russia's GDP is expected to shrink. Russia's economy minister said Saturday that gross domestic product is expected to shrink 3% in 2015 with oil at $50 (£33) a barrel and capital flight at $115 billion (£76 billion). France supports Greece's debt negotiations. French officials support the efforts of Greece's new anti-austerity government to renegotiate the framework of its international bailout deal, but said they would not forgive Greek debt. The US is investigating Moody's. The US Justice Department is investigating Moody's Investor Service for issuing favouring ratings to mortgage deals in the lead up to the 2008 financial crisis, The Wall Street Journal reports. Ford's CFO sees trouble in Russia. Ford's chief financial officer Bob Shanks reportedly said in an interview with German newspaper Handelsblatt that "2015 does not look good" for business in Russia. Ford had previously forecast losses amid the sinking ruble and the decline of Russia's economy. Eurozone PMI Is Coming. Figures for the Eurozone manufacturing Purchasing Mangers' Index will be released At 9 a.m. GMT (4 a.m. ET).Join the conversation about this story »
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