THE FTSE 100 has endured one of its worst mornings for years, with £65bn being lost from companies’ values as the market reacted to sharp falls in Chinese shares.
The index of the UK’s leading companies opened down 175 points, or 2.8%, and briefly dipped before 6,000 in early trading to reach its lowest point since January 2013.
Volatile trading continued, and after being at 6,019 at 12pm it lost 100 points in an hour to reach 5,915 at 1pm.
Earlier, markets in Germany, Spain, Italy and Portugal all opened down more than 3%, with Germany’s Dax entering bear territory, having fallen more than 20% since April. In the same period the FTSE is down around 15%.
Overnight, the Australian stock market, the ASX 200, closed down 4% wiping off £30bn as it reached a two-year low.
China’s markets have fallen by 30% in recent weeks, although it follows an 18-month period when values increased by 150%.
