While the year has started on a down note, Solly said he "wouldn't subscribe" to the theory that a weak first day predicts a weak year ahead.
Markets continued to swing on Tuesday, and the Shanghai Composite ended with a 0.3 percent loss. Stocks in China fell so dramatically that trading was halted for the first time ever.
An earlier 15-minute suspension at the 5% level failed to stop the retreat, with shares extending losses as soon as the market re-opened.
Following the 2.5 per cent average slump in Europe and the 1.5 per cent fall on Wall Street last night the S&P;/ASX 200 index fell 1.1 per cent at the open after closing before the worst of the Chinese rout yesterday.
Under Governor Stefan Ingves, the Riksbank has already slashed rates to a record low of -0.35 percent.
Investors are justified to worry about global growth as the factory numbers may not fully indicate how quickly China has been slowing down, said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.
On the economic front, the US December ISM manufacturing Index was 48.2, below market expectations and down from November's 48.6 points.
Saudi Arabia executed a prominent Shiite cleric, prompting Iranian protesters to set fire to the Saudi Embassy in Tehran on Sunday. "Saudi Arabia is our most important ally (in the region), the most important ally of the United States, and the only country in the region with a stable government", said Fidel Helmer, capital markets expert, Hauch & Aufhaeuser. "Global growth and geopolitical stability remain the main sources of concern". While a slowdown in China has some impact on the USA because American companies like Apple sell products there, the vast majority of the US economy is made up of Americans buying things at home.
Brent for February delivery was quoted 29 cents firmer at $37.51 a barrel, while USA crude added 27 cents to $37.03. Concerns about a potential threat to world oil supply caused a spike higher in oil prices.
Declining issues outnumbered advancing ones on the NYSE by 2,269 to 819, for a 2.77-to-1 ratio on the downside; on the Nasdaq, 2,251 issues fell and 598 advanced for a 3.76-to-1 ratio favouring decliners. The inflation data in the coming months should pick up as last year's decline in energy prices begins to drop out of the annual comparison although this will not be enough to bring it even close to the ECB's below but close to 2% target, despite its meagre attempt at stimulus last month.
The Kospi finished up 0.6% to 1,930.53 points.
The common currency was stuck at $1.0828 on Tuesday, having touched a one-month low around $10.780.
