Great PS500bn Fall of China; CITYDESK For mortgage advice you can't afford to miss, follow Money Doctor Fergus Muirhead's series of special reports at www.dailyrecord.co.uk/all-about/mortgage-advice Shares plummet in fears over economy.
GLOBAL share prices suffered a near PS500billion meltdown yesterday amid fresh fears over China's economy.
More than PS48billion was wiped off the value of Britain's biggest firms as the FTSE 100 tumbled three per cent to close down 189 points at 6058.
And other stock markets around the world were also left reeling during another day of turmoil.
Markets in France and Germany fell, while on Wall Street the Dow Jones was down more than 300 points, or 1.9 per cent, halfway through its day.
The FTSE All World, which monitors global markets, was down 2.09 per cent - equating to a massive PS485billion loss.
Concern about the alarming state of the world's second biggest economy has gripped global markets for the past three weeks.
Investors, including millions of Britons with pension pots, have endured a white knuckle rollercoaster ride of sharp rises and falls in share prices.
Yesterday's sharp drop was triggered by figures showing factory output in China last month fell at its fastest pace in three years.
Joshua Mahony, market analyst at online trading firm IG, said: "The importance of today's announcement is that the slowdown is hitting the larger state-backed firms who typically take longer to feel the pain."
Yesterday also brought sluggish data from UK manufacturers, with jobs falling for the first time in more than two years, while US figures showed growth in the same sector at its slowest since May 2013.
Laith Khalaf, senior analyst, Hargreaves Lansdown, said: "Stock markets are once again feeling the Chinese burn.
"Meanwhile the mini bull market in oil appears to have run out of steam, with a barrel now heading back towards the $50 mark." China's slowdown will prompt the International Monetary Fund (IMF) to scale back forecasts for the global economy.
| |THE share slump came despite| |better jobless figures in Europe.
The crisis-hit eurozone's unemployment rate fell to a more than three year low of 10.9 per cent last month, down from 11.1 per cent in June.
The fall was fuelled by a big drop in Italy. Germany had the lowest jobless rate at 4.7 per cent, with Greece the highest at 25 per cent.
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|Publication:||Daily Record (Glasgow, Scotland)|
|Date:||Sep 2, 2015|
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