The Caixin China Manufacturing PMI fell below 50, the mark that separates expansion from contraction, for the first time since May 2017 in December.

"In general, China's manufacturing sector faced weakening domestic demand and subdued external demand in December," said Dr. Zhengsheng Zhong, director of macroeconomic analysis at CEBM Group.

"Companies had a stronger intention to destock and prices of industrial products were declining, which could further drag on production. It is looking increasingly likely that the Chinese economy may come under greater downward pressure."

Australian shares have dived just after midday on the back of a disappointing print for China's December manufacturing activity.

The S&P/ASX 200 Index is down 56.8 points, or 1 per cent, at 5589.6.

Embattled skincare group BWX has had a minor victory in its legal battle with a former corporate adviser, with discovery in the case to be conducted under a cloak of secrecy.

US group Waterloo Capital Partners filed a claim in New York in July 2018, alleging BWX had reneged on a deal to share the spoils of a proposed private equity roll-up that Waterloo says it advised BWX founders John Humble and Aaron Finlay on.

The founders have since left their executive roles at BWX after backing an aborted takeover of the company by Bain Capital.

James Thomson has the full story here.

The Australian dollar dipped below US70¢ for the first time since March 2016 on Wednesday morning, extending its falls from 2018 into the new year.

The US dollar recorded its strongest annual performance in three years in 2018 as investors looked to the greenback as a safe haven during continued volatility in global markets.

The Australian dollar lost 9.8 per cent of its value against the greenback in 2018.

According to The Australian Financial Review's first quarterly survey of economists for 2019, economists are expecting the Aussie dollar with be buying about US71¢ in June with Market Economics' Stephen Koukoulas forecasting it will be at US64¢.

It will be cheaper for motorists to fill-up ahead of New Year's Day road trips thanks to petrol prices on Australia's east coast falling to their lowest levels in 15 months.

A collapse in crude oil prices since October has flowed through to local bowsers, with average unleaded petrol prices sitting at $1.16 in Sydney and Brisbane, and $1.17 in Melbourne on Monday, according to price monitor MotorMouth.

Australian shares are trading close to flat through midday, as the market struggles to find a lead.

The S&P/ASX 200 Index is down 2.5 points, or less than 0.1 per cent, at 5643.9.

After its worst end to a year since the Great Depression, Wall Street is suddenly a bargain., writes Tom Rees.

The S&P 500's forward price-earnings ratio - a gauge of a stock's value against analysts' earnings forecasts - indicates that US stocks have not been this cheap in four years. Another, the price-earnings to growth ratio, suggests that only in the depths of the financial crisis could investors snap up cheaper stock.

Read the full opinion piece here.

Australian economists are becoming increasingly doubtful the RBA will hike rates in 2019 and the tables are also beginning to turn on whether the next movement will even be up.

The Australian Financial Review's first quarterly economists survey for 2019 found that while most are still expecting a rate hike, they now believe it will happen in June 2020.

It was always set to be a turbulent start to trading this morning...

The market has already rebounded and we're now sitting 3 points higher at 10:40am AEDT.

CSL and BHP Group have extended their earlier gains while the major banks have softened their losses.

Australian shares have opened 2019 lower, weighed by some small losses from the major banks.

The S&P/ASX 200 Index is down 23.7 points, or 0.4 per cent, at 5622.7.