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China stock market panic: £74bn wiped off FTSE 100 - live updates China stock market panic: Wall Street falls in late trading - live
(35 minutes later)
8.39pm BST20:39
Huge volumes of US-listed shares have changed hands today, making it the busiest day of 2015.
FastFT has the details:
More than 11.6bn shares have traded hands on the New York Stock Exchange, Nasdaq and NYSE MKT by 3:30pm on Monday afternoon, the highest level of the year with roughly 30 minutes before markets close for the day.
More here:
US stock volumes set to eclipse October's 'flash crash' http://t.co/q3UoRVmyol
Dow has traveled more than 4,100 points today; nearly 5B shares have traded on NYSE with $161B trading hands in NYSE-listed securities.
8.33pm BST20:33
8.26pm BST20:26
With 30 minutes to go until Wall Street closes, the Dow Jones is down 670 points or over 4%.
Better than its opening slump (1000 points down!), but rather worse than its early afternoon recovery.
Dow off 682 now
The words: "Dow Jones", "600 points" and "again" shouldn't all be used together to refer to one day's trading.
8.23pm BST20:23
It’s been a pretty crazy day on Wall Street today, says Max Wollf, chief economist for Manhattan Venture Partners.
Despite the Dow’s wobbles, Wollf reckons this isn’t a rerun of 2008, but investors must stop treating risky assets as risk-free.
You can watch the interview here:
8.16pm BST20:16
US market falling back in late trading
Wall Street has entered its final hour of trading, after a turbulent day. And markets appear to losing ground again.
The Dow Jones industrial average is currently down 3.6%, a drop of 580 points to 15,872, erasing some of its earlier recovery.
The Nasdaq is down by 3.7%, while the S&P 500 -- the broadest US index - has lost 4.2% at pixel time.
New York traders are feeling the jitters again; perhaps worrying about Tuesday’s Asian market open....
8.03pm BST20:038.03pm BST20:03
Apple boss sees 'strong growth' in ChinaApple boss sees 'strong growth' in China
It has been a topsy-turvy day on US markets and few companies have experienced the ups and downs as much as Apple.It has been a topsy-turvy day on US markets and few companies have experienced the ups and downs as much as Apple.
The smartphone maker saw its share price slide by 13% on US stock markets, before springing back into positive territory.The smartphone maker saw its share price slide by 13% on US stock markets, before springing back into positive territory.
Apple CEO Tim Cook took the unusual step of commenting on the help of Apple’s business halfway through a financial quarter, via CNBC.Apple CEO Tim Cook took the unusual step of commenting on the help of Apple’s business halfway through a financial quarter, via CNBC.
I get updates on our performance in China every day, including this morning, and I can tell you that we have continued to experience strong growth for our business in China through July and August. Growth in iPhone activations has actually accelerated over the past few weeks, and we have had the best performance of the year for the App Store in China during the last 2 weeks.I get updates on our performance in China every day, including this morning, and I can tell you that we have continued to experience strong growth for our business in China through July and August. Growth in iPhone activations has actually accelerated over the past few weeks, and we have had the best performance of the year for the App Store in China during the last 2 weeks.
Obviously I can’t predict the future, but our performance so far this quarter is reassuring. Additionally, I continue to believe that China represents an unprecedented opportunity over the long term.Obviously I can’t predict the future, but our performance so far this quarter is reassuring. Additionally, I continue to believe that China represents an unprecedented opportunity over the long term.
Apple shares are now 0.7% down on market opening, while the Dow Jones has slipped 3.4%.Apple shares are now 0.7% down on market opening, while the Dow Jones has slipped 3.4%.
7.43pm BST19:437.43pm BST19:43
If everyone knew the Chinese economy was slowing down, why are markets falling so much.If everyone knew the Chinese economy was slowing down, why are markets falling so much.
It’s worth remembering that many traders are at the beach or the golf course, meaning that market moves are amplified at a time when fewer people are involved.It’s worth remembering that many traders are at the beach or the golf course, meaning that market moves are amplified at a time when fewer people are involved.
Demetrios Efstathiou at Standard Bank says the sell off has been been amplified by a number of factors, none of which relate to China.Demetrios Efstathiou at Standard Bank says the sell off has been been amplified by a number of factors, none of which relate to China.
We start with the August holiday season that finds many risk takers on holidays, followed by the breaching of technical support levels, then the strong presence of computer algorithms trading in such illiquid times.We start with the August holiday season that finds many risk takers on holidays, followed by the breaching of technical support levels, then the strong presence of computer algorithms trading in such illiquid times.
7.29pm BST19:297.29pm BST19:29
Over on Wall St, market watchers are calling the sharp early decline on New York stock markets as “more shakeout” than cut and run by investors.Over on Wall St, market watchers are calling the sharp early decline on New York stock markets as “more shakeout” than cut and run by investors.
Jason Ware, chief investment officer at Albion Financial Group in Utah, blamed early losses on “indiscriminate selling” - automatic trading, rather than a considered decision to get out of the market.Jason Ware, chief investment officer at Albion Financial Group in Utah, blamed early losses on “indiscriminate selling” - automatic trading, rather than a considered decision to get out of the market.
We are unlikely to be going into a bear market .We are unlikely to be going into a bear market .
There are a number of positive things happening under the surface of all this chaos and it is easy to forget those things when you see these types of moves.There are a number of positive things happening under the surface of all this chaos and it is easy to forget those things when you see these types of moves.
Quotes via ReutersQuotes via Reuters
7.12pm BST19:127.12pm BST19:12
Merkel puts faith in Chinese authoritiesMerkel puts faith in Chinese authorities
The German chancellor Angela Merkel has sought to offer reassurance to panicky investors, after the country’s main stock index crashed into bear-market territory.The German chancellor Angela Merkel has sought to offer reassurance to panicky investors, after the country’s main stock index crashed into bear-market territory.
Speaking at a press conference with French president François Hollande, she said:Speaking at a press conference with French president François Hollande, she said:
China will do everything it can to stabilise the economic situation.China will do everything it can to stabilise the economic situation.
She also referred to the fact the International Monetary Fund sees the sell-off in China as an “adjustment”, not a crisis. A senior IMF officials said at the weekend “it was totally premature” to speak of a crisis in China.She also referred to the fact the International Monetary Fund sees the sell-off in China as an “adjustment”, not a crisis. A senior IMF officials said at the weekend “it was totally premature” to speak of a crisis in China.
President Hollande also put in his words of reassurance.President Hollande also put in his words of reassurance.
[China] will find responses within itself and the world economy is sufficiently solid to have growth perspectives that are not solely linked to the situation in China[China] will find responses within itself and the world economy is sufficiently solid to have growth perspectives that are not solely linked to the situation in China
The third person in the picture is Ukraine’s president Petro Poroshenko, who was meeting the French and German leaders in Berlin. While the stock markets in Europe and Asia fall into panic mode, the ceasefire in Ukraine is falling apart.The third person in the picture is Ukraine’s president Petro Poroshenko, who was meeting the French and German leaders in Berlin. While the stock markets in Europe and Asia fall into panic mode, the ceasefire in Ukraine is falling apart.
6.47pm BST18:476.47pm BST18:47
I think US investors are recognising that all is not well in the worldI think US investors are recognising that all is not well in the world
A US analyst explains what is happening on US markets.A US analyst explains what is happening on US markets.
Updated at 8.13pm BST
6.42pm BST18:426.42pm BST18:42
The White House has reason to be sounding confident.The White House has reason to be sounding confident.
The three major US stock indices are all down by less than 2%, not such a bad performance compared to the market panic in Europe and Asia.The three major US stock indices are all down by less than 2%, not such a bad performance compared to the market panic in Europe and Asia.
Updated at 6.43pm BSTUpdated at 6.43pm BST
6.35pm BST18:356.35pm BST18:35
US economy 'far stronger now' than 2008, says White HouseUS economy 'far stronger now' than 2008, says White House
Paul LewisPaul Lewis
The White House has played down fears that volatility in international stock markets, particularly in China, will have any significant knock-on impact on the US economy, writes the Guardian’s Washington correspondent Paul Lewis.The White House has played down fears that volatility in international stock markets, particularly in China, will have any significant knock-on impact on the US economy, writes the Guardian’s Washington correspondent Paul Lewis.
“There is no doubt the global economy is more interconnected that it ever has been,” Josh Earnest, the president’s chief spokesperson, told reporters on Monday.“There is no doubt the global economy is more interconnected that it ever has been,” Josh Earnest, the president’s chief spokesperson, told reporters on Monday.
What I would encourage people to evaluate is the ongoing strength and resilience of the US economy.What I would encourage people to evaluate is the ongoing strength and resilience of the US economy.
Earnest said the US was experiencing the longest period of sustained private sector job increases in American history, with unemployment is at the lowest level in seven years. “The US economy is far stronger now than it was in 2008,” he said.Earnest said the US was experiencing the longest period of sustained private sector job increases in American history, with unemployment is at the lowest level in seven years. “The US economy is far stronger now than it was in 2008,” he said.
Earnest added that Wall Street reforms ushered in since the financial crisis mean that major US financial institutions have added more than $600bn in capital since 2009.Earnest added that Wall Street reforms ushered in since the financial crisis mean that major US financial institutions have added more than $600bn in capital since 2009.
That means banks are less reliant on unstable short-term funding, and that they are better able to withstand short-term volatility in the financial markets.That means banks are less reliant on unstable short-term funding, and that they are better able to withstand short-term volatility in the financial markets.
Updated at 6.36pm BSTUpdated at 6.36pm BST
6.30pm BST18:306.30pm BST18:30
Market panic was too much to measure on US markets today.Market panic was too much to measure on US markets today.
The Chicago Board Options Exchange Volatility Index - a gauge of market turbulence - failed to update for 30 minutes after trading started, according to data seen by Blooomberg.The Chicago Board Options Exchange Volatility Index - a gauge of market turbulence - failed to update for 30 minutes after trading started, according to data seen by Blooomberg.
Here are more details, courtesy of Bloomberg:Here are more details, courtesy of Bloomberg:
The gauge reflects the cost of options on the Standard & Poor’s 500 Index that are used, among other things, to protect against losses in shares, so its level is viewed to gauge how cautious investors are toward equities.The gauge reflects the cost of options on the Standard & Poor’s 500 Index that are used, among other things, to protect against losses in shares, so its level is viewed to gauge how cautious investors are toward equities.
Today, they started out very cautious. The Standard & Poor’s 500 Index plunged more than 5% in the first minutes of trading as a global rout in risk assets circled the globe for a third day...Today, they started out very cautious. The Standard & Poor’s 500 Index plunged more than 5% in the first minutes of trading as a global rout in risk assets circled the globe for a third day...
More hereMore here
6.17pm BST18:176.17pm BST18:17
Worst day for European markets since 2008Worst day for European markets since 2008
Market watchers have also been counting the cost of losses across Europe.Market watchers have also been counting the cost of losses across Europe.
The pan-European FTSE Eurofirst 300 has lost €450bn (£286bn) today, its worst performance since November 2008, as it ended the day 5.4% lower.The pan-European FTSE Eurofirst 300 has lost €450bn (£286bn) today, its worst performance since November 2008, as it ended the day 5.4% lower.
This brings total losses since the start of the month to €1 trillion.This brings total losses since the start of the month to €1 trillion.
6.01pm BST18:016.01pm BST18:01
A painful, but perhaps necessary, return of common sense. This is the verdict of London-based market analysts Baker Tilly on the Chinese stock market rout.A painful, but perhaps necessary, return of common sense. This is the verdict of London-based market analysts Baker Tilly on the Chinese stock market rout.
Rob Donaldson, head of M&A and private equity at Baker Tilly Corporate Finance, said:Rob Donaldson, head of M&A and private equity at Baker Tilly Corporate Finance, said:
Over the last few years, tens of millions of individual investors in China - who vastly outweigh institutional investors (80/20 versus the other way around in the developed markets) - have been encouraged by the State apparatus to plough their money into shares. This has pushed prices up far beyond their fundamental value and what we are now seeing is a painful, but perhaps necessary, return of common sense.Over the last few years, tens of millions of individual investors in China - who vastly outweigh institutional investors (80/20 versus the other way around in the developed markets) - have been encouraged by the State apparatus to plough their money into shares. This has pushed prices up far beyond their fundamental value and what we are now seeing is a painful, but perhaps necessary, return of common sense.
What is perhaps more surprising is the degree of knock-on effects to share prices on the FTSE and across European markets, but we should perhaps be wary of undue panic. Fundamentally, the Chinese economy was always going to slow...What is perhaps more surprising is the degree of knock-on effects to share prices on the FTSE and across European markets, but we should perhaps be wary of undue panic. Fundamentally, the Chinese economy was always going to slow...
One likely outcome could be that Chinese investors are even more likely to be looking for tasty investments outside China. Chinese firms have already been snapping up western brands, from breakfast cereals to super yachts as well as splashing cash on big infrastructure projects.One likely outcome could be that Chinese investors are even more likely to be looking for tasty investments outside China. Chinese firms have already been snapping up western brands, from breakfast cereals to super yachts as well as splashing cash on big infrastructure projects.
Donaldson says:Donaldson says:
As capital flight continues and hot money heads for the exit, a possible side effect is that investors will now be more likely than ever to look to make their money work for them elsewhere – including in the UK.As capital flight continues and hot money heads for the exit, a possible side effect is that investors will now be more likely than ever to look to make their money work for them elsewhere – including in the UK.
5.32pm BST17:325.32pm BST17:32
The FTSE Group has confirmed that £73.9bn was wiped off the FTSE 100 today, as the London stock market suffered its biggest tumble in over six years.The FTSE Group has confirmed that £73.9bn was wiped off the FTSE 100 today, as the London stock market suffered its biggest tumble in over six years.
A further £13bn was wiped off the FTSE 250 index of smaller companies, showing the extend of the rout (my colleague Graham Ruddick reports)A further £13bn was wiped off the FTSE 250 index of smaller companies, showing the extend of the rout (my colleague Graham Ruddick reports)
Updated at 5.32pm BSTUpdated at 5.32pm BST
5.23pm BST17:235.23pm BST17:23
FTSE 100 closed at 5,898, which is down 288.78 points on Friday’s close. In terms of GBP lost, this equates to £73.88 billion.FTSE 100 closed at 5,898, which is down 288.78 points on Friday’s close. In terms of GBP lost, this equates to £73.88 billion.
5.16pm BST17:165.16pm BST17:16
Biggest crash since 2009 "wipes £74bn off FTSE 100"Biggest crash since 2009 "wipes £74bn off FTSE 100"
Around £74bn has been wiped off the value of the FTSE 100 by today’s selloff, according to Sky’s financial analyst, Guy Harding.Around £74bn has been wiped off the value of the FTSE 100 by today’s selloff, according to Sky’s financial analyst, Guy Harding.
Nearly £74bn was wiped off the value of the FTSE 100 as the UK had its biggest one day fall since March '09. #FTSE100 pic.twitter.com/o9SfLhx6DCNearly £74bn was wiped off the value of the FTSE 100 as the UK had its biggest one day fall since March '09. #FTSE100 pic.twitter.com/o9SfLhx6DC
The 4.6% slump on the blue-chip index today looks to be the biggest one-day fall since March 2009.The 4.6% slump on the blue-chip index today looks to be the biggest one-day fall since March 2009.
The FTSE 100 Index has closed down 4.67% suffering its biggest daily drop since March 2009The FTSE 100 Index has closed down 4.67% suffering its biggest daily drop since March 2009
And it means that the FTSE 100 has just posted its longest losing streak since 2003.And it means that the FTSE 100 has just posted its longest losing streak since 2003.
Laith Khalaf, Senior Analyst, Hargreaves Lansdown, explains:Laith Khalaf, Senior Analyst, Hargreaves Lansdown, explains:
“The summer slump continued into its third week as global stock markets sold off once again. Here in the UK the Footsie has been decimated in ten days, as fears over global growth have gripped international investors.“The summer slump continued into its third week as global stock markets sold off once again. Here in the UK the Footsie has been decimated in ten days, as fears over global growth have gripped international investors.
China and commodities are still dominating proceedings, with oil and mining companies once again bearing the brunt of poor sentiment, though the banks aren’t far behind.China and commodities are still dominating proceedings, with oil and mining companies once again bearing the brunt of poor sentiment, though the banks aren’t far behind.
It was just five months ago investors cheered as the Footsie broke through the 7,000 mark for the first time; it now looks like a very long climb back.”It was just five months ago investors cheered as the Footsie broke through the 7,000 mark for the first time; it now looks like a very long climb back.”
4.59pm BST16:594.59pm BST16:59
FTSE 100 tumbles 4.67%FTSE 100 tumbles 4.67%
Britain’s FTSE 100 has plunged to its lowest level since the start of 2013, after the worst day’s trading in several years.Britain’s FTSE 100 has plunged to its lowest level since the start of 2013, after the worst day’s trading in several years.
The FTSE 100 finished the day down 288 points, or 4.67%, at 5898, as China’s market crash rippled through the markets.The FTSE 100 finished the day down 288 points, or 4.67%, at 5898, as China’s market crash rippled through the markets.
By my reckoning, that means more than £70bn has been wiped off the index -- we’re trying to get that confirmed now.By my reckoning, that means more than £70bn has been wiped off the index -- we’re trying to get that confirmed now.
That’s 17% off its recent record high, meaning the Footsie is close to a bear market (a 20% decline).That’s 17% off its recent record high, meaning the Footsie is close to a bear market (a 20% decline).
Mining shares plummeted through the day, as fears grew that China’s economy is in trouble.Mining shares plummeted through the day, as fears grew that China’s economy is in trouble.
Commodity trader Glencore slumped 13% to a new record low, while Anglo American and BHP Billiton lost over 9%.Commodity trader Glencore slumped 13% to a new record low, while Anglo American and BHP Billiton lost over 9%.
Glencore finishes down 13%, worst performer in FTSE100. Anglo drops 9.9% and BHP 9.2%. FTSE miners index at 6-yr low pic.twitter.com/lJ3IiLEmBzGlencore finishes down 13%, worst performer in FTSE100. Anglo drops 9.9% and BHP 9.2%. FTSE miners index at 6-yr low pic.twitter.com/lJ3IiLEmBz
It’s the 24th biggest percentage drop since the blue-chip index was created in the deregulation of the City in 1984, according to RBS:It’s the 24th biggest percentage drop since the blue-chip index was created in the deregulation of the City in 1984, according to RBS:
Well that was quite a ride. FTSE 100 closes -4.67% down today. Puts it in the top 24 biggest daily falls since 1984. pic.twitter.com/a705VOSw9NWell that was quite a ride. FTSE 100 closes -4.67% down today. Puts it in the top 24 biggest daily falls since 1984. pic.twitter.com/a705VOSw9N
Updated at 5.06pm BSTUpdated at 5.06pm BST
4.57pm BST16:574.57pm BST16:57
This is the worst day’s trading for many of European stock markets since 2011.This is the worst day’s trading for many of European stock markets since 2011.
And the pan-Europan Stoxx 600 had its worse day since the end of 2008, according to Marketwatch.And the pan-Europan Stoxx 600 had its worse day since the end of 2008, according to Marketwatch.
German and French stocks suffer worst day since 2011 http://t.co/NNKeSKFmI0German and French stocks suffer worst day since 2011 http://t.co/NNKeSKFmI0
Updated at 5.05pm BSTUpdated at 5.05pm BST
4.52pm BST16:524.52pm BST16:52
It was a day to forget for Frankfurt traders.It was a day to forget for Frankfurt traders.
*GERMANY'S DAX CLOSES DOWN 22% FROM RECORD, ENTERS BEAR MARKET*GERMANY'S DAX CLOSES DOWN 22% FROM RECORD, ENTERS BEAR MARKET
4.35pm BST16:354.35pm BST16:35
That’s it! European stock market have closed, with heavy losses across the board.That’s it! European stock market have closed, with heavy losses across the board.
The pan-European FTSeurofirst300 has provisionally closed down 5.4%, which is its lowest level this year.The pan-European FTSeurofirst300 has provisionally closed down 5.4%, which is its lowest level this year.
That includes a 5% tumble on the German DAX, while France’s CAC shed 5.6% and Spain’s IBEX lost 5.7%.That includes a 5% tumble on the German DAX, while France’s CAC shed 5.6% and Spain’s IBEX lost 5.7%.
The FTSE 100 index was down over 4.5% as trading ended, a very heavy selloff. More on that in a moment....The FTSE 100 index was down over 4.5% as trading ended, a very heavy selloff. More on that in a moment....
Updated at 4.36pm BSTUpdated at 4.36pm BST
4.13pm BST16:134.13pm BST16:13
Here’s a reason to worry. The VIX index, commonly known as the Fear Index, hit its highest level since January 2009 earlier today.Here’s a reason to worry. The VIX index, commonly known as the Fear Index, hit its highest level since January 2009 earlier today.
VIX surged by 67% today to 53 - a level not seen since the aftermath of the Lehman Brothers’ collapse. It then dipped back to 37.4, below the level when the US lost its AAA credit rating in 2011 (updated).VIX surged by 67% today to 53 - a level not seen since the aftermath of the Lehman Brothers’ collapse. It then dipped back to 37.4, below the level when the US lost its AAA credit rating in 2011 (updated).
The VIX tracks the prices of options on the S&P 500, which are often used to hedge against potential losses. So a jump in the VIX shows that investors are getting scared.....The VIX tracks the prices of options on the S&P 500, which are often used to hedge against potential losses. So a jump in the VIX shows that investors are getting scared.....
Updated at 4.28pm BSTUpdated at 4.28pm BST
4.10pm BST16:104.10pm BST16:10
Cheer up, readers in the City. Europe’s stock markets close in just 20 minutes, and then you can have a well-earned rest (and perhaps a small sherry).Cheer up, readers in the City. Europe’s stock markets close in just 20 minutes, and then you can have a well-earned rest (and perhaps a small sherry).
4.05pm BST16:054.05pm BST16:05
Savers shouldn’t be too alarmed by today’s market selloff, argues Nick Dixon, Investment Director at Aegon UK (the life insurance and pension firm).Savers shouldn’t be too alarmed by today’s market selloff, argues Nick Dixon, Investment Director at Aegon UK (the life insurance and pension firm).
His advice is to sit tight, and ride the volatility (even if you can’t actually enjoy the journey):His advice is to sit tight, and ride the volatility (even if you can’t actually enjoy the journey):
“If pension savers don’t need to access their fund for many years, they needn’t be alarmed by short term volatility. Stock markets are in for a bumpy ride over the coming weeks, but if savers can stomach the ups and downs, equities are likely to provide superior returns over the medium and long term.“If pension savers don’t need to access their fund for many years, they needn’t be alarmed by short term volatility. Stock markets are in for a bumpy ride over the coming weeks, but if savers can stomach the ups and downs, equities are likely to provide superior returns over the medium and long term.
With a FTSE-100 dividend yield of circa 4%, equities should deliver good value for savers with a five year plus investment horizon. Undoubtedly, there will be volatility along the way, but this shouldn’t faze individuals with a long term investment strategy.”With a FTSE-100 dividend yield of circa 4%, equities should deliver good value for savers with a five year plus investment horizon. Undoubtedly, there will be volatility along the way, but this shouldn’t faze individuals with a long term investment strategy.”
3.54pm BST15:543.54pm BST15:54
Larry Summers: This could be very seriousLarry Summers: This could be very serious
Markets may not pay much attention to Donald Trump’s views on the selloff, but Larry Summers is another matter entirely.Markets may not pay much attention to Donald Trump’s views on the selloff, but Larry Summers is another matter entirely.
Summers, the former US Treasury secretary, has suggested that the Federal Reserve could be forced to ease monetary policy, rather than hiking interest rates in the next few months.Summers, the former US Treasury secretary, has suggested that the Federal Reserve could be forced to ease monetary policy, rather than hiking interest rates in the next few months.
It is far from clear that the next Fed move will be a tightening.It is far from clear that the next Fed move will be a tightening.
As in August 1997, 1998, 2007 and 2008 we could be in the early stage of a very serious situation.As in August 1997, 1998, 2007 and 2008 we could be in the early stage of a very serious situation.
Summers has spent the last few years warning that developed economies are stuck in ‘secular stagnation’, requiring more vigorous government action (ie: spending) to lift us out of the mire.Summers has spent the last few years warning that developed economies are stuck in ‘secular stagnation’, requiring more vigorous government action (ie: spending) to lift us out of the mire.
Many policymakers have disagreed; we may soon find out who was right....Many policymakers have disagreed; we may soon find out who was right....
3.40pm BST15:403.40pm BST15:40
Photos: Global stock markets routedPhotos: Global stock markets routed
Here’s the scene on the New York stock exchange today, as the Dow Jones industrial average plunged 1,000 points at the start of trading before rebounding (a little)Here’s the scene on the New York stock exchange today, as the Dow Jones industrial average plunged 1,000 points at the start of trading before rebounding (a little)
Across the globe, traders have been gripped by the selloff since Asian markets opened around 15 hours ago, as these photos show:Across the globe, traders have been gripped by the selloff since Asian markets opened around 15 hours ago, as these photos show:
And here’s where it all began, in China, with the Shanghai stock market suffering its biggest fall since 2007.And here’s where it all began, in China, with the Shanghai stock market suffering its biggest fall since 2007.
Updated at 3.49pm BSTUpdated at 3.49pm BST
3.15pm BST15:153.15pm BST15:15
Global markets deep in the redGlobal markets deep in the red
World stock markets are not a pretty picture right now, even as the Dow Jones claws its way back from its worst losses.World stock markets are not a pretty picture right now, even as the Dow Jones claws its way back from its worst losses.
The FTSE 100 is still down 5%, and on track to hit its lowest level since December 2012. That would wipe around £80bn off the value of the index, I reckon.The FTSE 100 is still down 5%, and on track to hit its lowest level since December 2012. That would wipe around £80bn off the value of the index, I reckon.
And across Europe, the main indices have been hit just as hard. More than €500bn has been wiped off the FTSeurofirst 300 index, with just over an hour’s trading to go.And across Europe, the main indices have been hit just as hard. More than €500bn has been wiped off the FTSeurofirst 300 index, with just over an hour’s trading to go.
Here’s the situation right now:Here’s the situation right now:
3.11pm BST15:113.11pm BST15:11
Our Wall Street correspondent, Rupert Neate, reports:Our Wall Street correspondent, Rupert Neate, reports:
US stock markets collapsed on Monday continuing a global stock market rout that has wiped hundreds of billions of dollars off shares across the world.US stock markets collapsed on Monday continuing a global stock market rout that has wiped hundreds of billions of dollars off shares across the world.
The Dow Jones Industrial Average dropped by 6.4%, the S&P 500 dropped 4%, and the Nasdaq lost 8.5% raising fears that a fresh tech bubble has burst. The drops followed already-heavy falls last week.The Dow Jones Industrial Average dropped by 6.4%, the S&P 500 dropped 4%, and the Nasdaq lost 8.5% raising fears that a fresh tech bubble has burst. The drops followed already-heavy falls last week.
Technology stocks were the hardest hit with Facebook losing 14% at one point and Apple off 11%.....Technology stocks were the hardest hit with Facebook losing 14% at one point and Apple off 11%.....
More here:More here:
Related: US stocks nosedive in early trading amid collapse in global marketsRelated: US stocks nosedive in early trading amid collapse in global markets
3.04pm BST15:043.04pm BST15:04
Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia, fears that US stocks will keep falling until policymakers get a grip on the situation.Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia, fears that US stocks will keep falling until policymakers get a grip on the situation.
Luschini says (via Reuters):Luschini says (via Reuters):
“Until we have some sign that China and the emerging markets aren’t being sucked into some vortex from which they can’t recover ... it is unlikely this selloff will stem.”“Until we have some sign that China and the emerging markets aren’t being sucked into some vortex from which they can’t recover ... it is unlikely this selloff will stem.”
2.59pm BST14:592.59pm BST14:59
US presidential hopeful Donald Trump claims he’s the man to get the financial markets into better shape:US presidential hopeful Donald Trump claims he’s the man to get the financial markets into better shape:
Markets are crashing - all caused by poor planning and allowing China and Asia to dictate the agenda. This could get very messy! Vote Trump.Markets are crashing - all caused by poor planning and allowing China and Asia to dictate the agenda. This could get very messy! Vote Trump.
British journalist Paul Mason puts the blame elsewhere:British journalist Paul Mason puts the blame elsewhere:
Markets slump as world realises main growth engine in hands of incompetent, secretive police state that thinks it can dictate equity pricesMarkets slump as world realises main growth engine in hands of incompetent, secretive police state that thinks it can dictate equity prices
Updated at 3.01pm BSTUpdated at 3.01pm BST
2.53pm BST14:532.53pm BST14:53
European stock markets slumped by 7.8% as traders watched the Dow Jones index shed 1,000 points in early trading (and who can blame them?).European stock markets slumped by 7.8% as traders watched the Dow Jones index shed 1,000 points in early trading (and who can blame them?).
They’re now clawing back some losses, but are still on track for their biggest losses since the early days of the financial crisis.They’re now clawing back some losses, but are still on track for their biggest losses since the early days of the financial crisis.
In the last 15 mins, #FTSE +150pts, #DAX +200pts and #Dow +500pts #crazyIn the last 15 mins, #FTSE +150pts, #DAX +200pts and #Dow +500pts #crazy
2.52pm BST14:522.52pm BST14:52
The Dow Jones index is now below 16,000 for the first time since February 2014.The Dow Jones index is now below 16,000 for the first time since February 2014.
It’s now 14% below its record peak, putting the Dow firmly into correction territory.It’s now 14% below its record peak, putting the Dow firmly into correction territory.
Updated at 2.54pm BSTUpdated at 2.54pm BST
2.48pm BST14:482.48pm BST14:48
After plunging 1000 points (!) at the start of trading, America Dow Jones index appears to be stabilising. But it’s very early days.After plunging 1000 points (!) at the start of trading, America Dow Jones index appears to be stabilising. But it’s very early days.
Fifteen minutes into trading, the Dow is currently down 632 points at 15831. That’s a 3.8% slump, adding to the heavy losses we’ve already seen in Europe and Asia over the last 12 hours.Fifteen minutes into trading, the Dow is currently down 632 points at 15831. That’s a 3.8% slump, adding to the heavy losses we’ve already seen in Europe and Asia over the last 12 hours.
2.41pm BST14:412.41pm BST14:41
-> Another history making day Dow's largest drop in a day since 2008 Down as much as 6.5% , more than 1000 pts-> Another history making day Dow's largest drop in a day since 2008 Down as much as 6.5% , more than 1000 pts
2.41pm BST14:412.41pm BST14:41
That is the biggest opening fall on Wall Street that I can remember since the dramatic days after Lehman Brothers, when the world’s financial market was really creaking.That is the biggest opening fall on Wall Street that I can remember since the dramatic days after Lehman Brothers, when the world’s financial market was really creaking.
2.39pm BST14:392.39pm BST14:39
Dow Jones falls 1,000 pointsDow Jones falls 1,000 points
Amazing scenes in New York - the Dow Jones industrial average briefly fell by over 1000 points, or over 6%, in frenzied early trading.Amazing scenes in New York - the Dow Jones industrial average briefly fell by over 1000 points, or over 6%, in frenzied early trading.
More US stocks are being hit by the selloff triggered by China’s slump overnight.More US stocks are being hit by the selloff triggered by China’s slump overnight.
1000 punten van Dow af. Dit is wat op de beurs een bloedbad wordt genoemd pic.twitter.com/InXiQrg5yD1000 punten van Dow af. Dit is wat op de beurs een bloedbad wordt genoemd pic.twitter.com/InXiQrg5yD
The market may calm down a little in a few minutes.... But right now, it’s a serious rout and Europe is being hit by the backwash.The market may calm down a little in a few minutes.... But right now, it’s a serious rout and Europe is being hit by the backwash.
2.35pm BST14:352.35pm BST14:35
The S&P 500 index has fallen into correction territory -- down over 4%.The S&P 500 index has fallen into correction territory -- down over 4%.
* S&P 500 down more than 10 pct from may 20 record high, confirming S&P 500 in correction territory - RTRS* S&P 500 down more than 10 pct from may 20 record high, confirming S&P 500 in correction territory - RTRS
2.34pm BST14:342.34pm BST14:34
Dow Jones index tumbles as Wall Street opensDow Jones index tumbles as Wall Street opens
The Dow Jones index has fallen 485 points at the open of trading in New York.... make that 502 points....The Dow Jones index has fallen 485 points at the open of trading in New York.... make that 502 points....
....it’s still falling, now down over 900 points, or more than 5%.....it’s still falling, now down over 900 points, or more than 5%.
Now it’s down 950 points!Now it’s down 950 points!
Dow now down 950 points.Dow now down 950 points.
And the Nasdaq index had plunged by 8.3%.....And the Nasdaq index had plunged by 8.3%.....
It’s going to take a few minutes to get a clear picture....It’s going to take a few minutes to get a clear picture....
2.31pm BST14:312.31pm BST14:31
DING DING DING. That’s the sound of the Wall Street opening bell being rung. Now for the selloff......DING DING DING. That’s the sound of the Wall Street opening bell being rung. Now for the selloff......
2.29pm BST14:292.29pm BST14:29
Brace yourselves. Here comes the opening of Wall Street, with shares expected to tumble sharply.....Brace yourselves. Here comes the opening of Wall Street, with shares expected to tumble sharply.....
2.26pm BST14:262.26pm BST14:26
Wall Street authorities have invoked a rarely-used regulation called Rule 48, in an effort to speed up and smooth trading when trading begins in a few minutes.Wall Street authorities have invoked a rarely-used regulation called Rule 48, in an effort to speed up and smooth trading when trading begins in a few minutes.
CNBC explains:CNBC explains:
The rule allows NYSE to open stocks without indications. “It was set up for situations like this,” said Art Hogan, chief market strategist at Wunderich Securities. It was last used in the financial crisis.The rule allows NYSE to open stocks without indications. “It was set up for situations like this,” said Art Hogan, chief market strategist at Wunderich Securities. It was last used in the financial crisis.
2.23pm BST14:232.23pm BST14:23
Here’s a good explanation of why markets are tanking today, from Thomas Thygesen, SEB’s head of cross-asset strategy, (via Bloomberg)Here’s a good explanation of why markets are tanking today, from Thomas Thygesen, SEB’s head of cross-asset strategy, (via Bloomberg)
“GDP growth in the U.S. and euro zone economies just isn’t strong enough to prevent a global disinflationary shock from accumulating.”“GDP growth in the U.S. and euro zone economies just isn’t strong enough to prevent a global disinflationary shock from accumulating.”
“People have realized there could be further weakness in the Chinese currency. They don’t seem in control of the situation and we could see feedback loops that haunt the U.S.”“People have realized there could be further weakness in the Chinese currency. They don’t seem in control of the situation and we could see feedback loops that haunt the U.S.”
Dow and S&P 500 futures both hit daily limit-down http://t.co/skNkUh3mYL pic.twitter.com/er4FSJpTQUDow and S&P 500 futures both hit daily limit-down http://t.co/skNkUh3mYL pic.twitter.com/er4FSJpTQU
2.17pm BST14:172.17pm BST14:17
European stocks hit new lowsEuropean stocks hit new lows
European markets are wobbling as we approach the opening of Wall Street.European markets are wobbling as we approach the opening of Wall Street.
The FTSE 100 index of blue-chip shares is now down by 5.5%, or 343 points, at 5844.The FTSE 100 index of blue-chip shares is now down by 5.5%, or 343 points, at 5844.
And the FTSeurofirst 300 index has fallen by 6.2%, on track for its worst one-day decline since 2008.And the FTSeurofirst 300 index has fallen by 6.2%, on track for its worst one-day decline since 2008.
All main European benchmarks down over 5%All main European benchmarks down over 5%
Why? Because the Dow Jones industrial average is expected to suffer a very serious selloff - around 800 points, or over 5%.Why? Because the Dow Jones industrial average is expected to suffer a very serious selloff - around 800 points, or over 5%.
BREAKING: DOW FUTURES FALL MORE THAN 800 POINTS http://t.co/84bqqVtnd0BREAKING: DOW FUTURES FALL MORE THAN 800 POINTS http://t.co/84bqqVtnd0
2.11pm BST14:112.11pm BST14:11
A former adviser to Gordon Brown, UK prime minister during the 2007-08 crisis, reckons the Chinese stock market crash means catastrophic times are ahead.A former adviser to Gordon Brown, UK prime minister during the 2007-08 crisis, reckons the Chinese stock market crash means catastrophic times are ahead.
Damian McBride warned that the next financial crisis will be worse than seven years ago, and urged followers to take action now.Damian McBride warned that the next financial crisis will be worse than seven years ago, and urged followers to take action now.
Here’s his alarming (alarmist?) tweets:Here’s his alarming (alarmist?) tweets:
Advice on the looming crash, No.1: get hard cash in a safe place now; don't assume banks & cashpoints will be open, or bank cards will work.Advice on the looming crash, No.1: get hard cash in a safe place now; don't assume banks & cashpoints will be open, or bank cards will work.
Crash advice No.2: do you have enough bottled water, tinned goods & other essentials at home to live a month indoors? If not, get shopping.Crash advice No.2: do you have enough bottled water, tinned goods & other essentials at home to live a month indoors? If not, get shopping.
Crash advice No.3: agree a rally point with your loved ones in case transport and communication gets cut off; somewhere you can all head to.Crash advice No.3: agree a rally point with your loved ones in case transport and communication gets cut off; somewhere you can all head to.
Simply this, @AndrewzCooper - we were close enough in 2008 (if the bank bailout hadn't worked), and what's coming is on 20 times that scale.Simply this, @AndrewzCooper - we were close enough in 2008 (if the bank bailout hadn't worked), and what's coming is on 20 times that scale.
For the record, I don’t think the global market selloff means the economic system is about to totally seize up. It’s certainly serious, and we don’t know the ramifications for some time. But I suspect policymakers will avoid a complete meltdown.For the record, I don’t think the global market selloff means the economic system is about to totally seize up. It’s certainly serious, and we don’t know the ramifications for some time. But I suspect policymakers will avoid a complete meltdown.
Feel free to quote that back at me in a few months, though, if I find myself life-blogging the collapse of the banking sector.....Feel free to quote that back at me in a few months, though, if I find myself life-blogging the collapse of the banking sector.....
Dear @DPMcBride, I will exchange your electronic money for tinned food and hats. Very good price. DM me. https://t.co/2Ud10zibcQDear @DPMcBride, I will exchange your electronic money for tinned food and hats. Very good price. DM me. https://t.co/2Ud10zibcQ
1.46pm BST13:461.46pm BST13:46
US stock market authorities have been forced to suspend the futures market on the Nasdaq index.US stock market authorities have been forced to suspend the futures market on the Nasdaq index.
Panicking traders have driven it down 5% - the maximum allowed under Wall Street rules before a circuit-breaker is triggered.Panicking traders have driven it down 5% - the maximum allowed under Wall Street rules before a circuit-breaker is triggered.
Have you tried switching it off and on again. RT @IGSquawk: Nasdaq100 Futures hit limit down, -5%.Have you tried switching it off and on again. RT @IGSquawk: Nasdaq100 Futures hit limit down, -5%.
Limit down on Nasdaq. Can someone just close the stock markets?Limit down on Nasdaq. Can someone just close the stock markets?
Updated at 1.49pm BSTUpdated at 1.49pm BST
1.42pm BST13:421.42pm BST13:42
Here’s our updated news story on today’s market mayhem:Here’s our updated news story on today’s market mayhem:
Related: FTSE 100 loses more than £60bn after China's 'Black Monday'Related: FTSE 100 loses more than £60bn after China's 'Black Monday'
1.36pm BST13:361.36pm BST13:36
George Osborne: Europe can ride out China volatilityGeorge Osborne: Europe can ride out China volatility
George Osborne, the UK’s Chancellor of the Exchequer, has warned that China’s stock market volatility is a “real concern”.George Osborne, the UK’s Chancellor of the Exchequer, has warned that China’s stock market volatility is a “real concern”.
Speaking during a trip to Sweden, Osborne also predicted that Europe would not suffer ‘immediate’ problems from China, despite the heavy losses across global markets today.Speaking during a trip to Sweden, Osborne also predicted that Europe would not suffer ‘immediate’ problems from China, despite the heavy losses across global markets today.
Over to Reuters for the story:Over to Reuters for the story:
British finance minister George Osborne said on Monday he did not expect the slump in Chinese share prices, which has hit financial markets around the world, to pose a threat to Europe’s economy.British finance minister George Osborne said on Monday he did not expect the slump in Chinese share prices, which has hit financial markets around the world, to pose a threat to Europe’s economy.
“I am reasonably confident, although I don’t think that we can be unaffected by what happens in China, I don’t think it’s going to cause immediate sharp problems in Europe,” Osborne said in response to a question from a reporter during a visit to Sweden.“I am reasonably confident, although I don’t think that we can be unaffected by what happens in China, I don’t think it’s going to cause immediate sharp problems in Europe,” Osborne said in response to a question from a reporter during a visit to Sweden.
While the volatility in China’s market was “a cause of real concern,” the main issue was the underlying growth of the country’s economy and officials in Beijing were focused on reforms to ensure consumption-led growth, he said. [end]While the volatility in China’s market was “a cause of real concern,” the main issue was the underlying growth of the country’s economy and officials in Beijing were focused on reforms to ensure consumption-led growth, he said. [end]
----------
Osborne is touring the Nordic area, discussing issues including Britain’s relationship with the rest of the EU. Yesterday he met with Finland’s finance minister Alex Stubb:Osborne is touring the Nordic area, discussing issues including Britain’s relationship with the rest of the EU. Yesterday he met with Finland’s finance minister Alex Stubb:
1.20pm BST13:201.20pm BST13:20
It’s a fast-moving situation, but the FTSE 100 currently is on track to lose roughly £70bn of value today, if it closes down around 4.5%.It’s a fast-moving situation, but the FTSE 100 currently is on track to lose roughly £70bn of value today, if it closes down around 4.5%.
#BlackMonday 1pm: FTSE 100 down 4.4%, £71bn wiped off it's value in 5 hrs #ftse #ChinaMeltdown pic.twitter.com/bHpGSHr11r#BlackMonday 1pm: FTSE 100 down 4.4%, £71bn wiped off it's value in 5 hrs #ftse #ChinaMeltdown pic.twitter.com/bHpGSHr11r
1.16pm BST13:161.16pm BST13:16
Wall Street is going to be, err, rather lively when trading begins, given the latest forecasts from the futures markets:Wall Street is going to be, err, rather lively when trading begins, given the latest forecasts from the futures markets:
US INDEX prices pre-equities open: #DOW 15850 -3.75% #SPX 1908.5 -3.1% #NASDAQ 3993 -4.9%US INDEX prices pre-equities open: #DOW 15850 -3.75% #SPX 1908.5 -3.1% #NASDAQ 3993 -4.9%
Shangai Composite - 8.5% Nikkei - 4.6% Euro Stoxx -5% Dow Jones Futures - 667 points Welcome back from holidays!Shangai Composite - 8.5% Nikkei - 4.6% Euro Stoxx -5% Dow Jones Futures - 667 points Welcome back from holidays!
1.04pm BST13:041.04pm BST13:04
European stocks face biggest fall since 2009European stocks face biggest fall since 2009
It gets worse and worse....It gets worse and worse....
More than €400bn has been wiped off the value of Europe’s three hundred largest companies today, according to Reuters data, as the selloff continues.More than €400bn has been wiped off the value of Europe’s three hundred largest companies today, according to Reuters data, as the selloff continues.
The FTSeurofirst300 index has now plunged by 4.5%, as stock markets in London, Paris, Frankfurt and beyond suffer heavy selling.The FTSeurofirst300 index has now plunged by 4.5%, as stock markets in London, Paris, Frankfurt and beyond suffer heavy selling.
FTSeurofirst300 is now on track for its biggest one-day decline since March 2009, Reuters says.FTSeurofirst300 is now on track for its biggest one-day decline since March 2009, Reuters says.
The Stoxx 600 index, which includes smaller European firms, is taking even more of a pounding.The Stoxx 600 index, which includes smaller European firms, is taking even more of a pounding.
This selloff won't end - Stoxx 600 now down more than 5% and on track for worst day since 2008!This selloff won't end - Stoxx 600 now down more than 5% and on track for worst day since 2008!
This is triggered by alarming signals from Wall Street, where the Dow Jones index is now forecast to plunge by 4% as fears over China’s crash ripple through global markets.This is triggered by alarming signals from Wall Street, where the Dow Jones index is now forecast to plunge by 4% as fears over China’s crash ripple through global markets.
* U.S. Dow Jones futures down more than 4 percent - RTRS* U.S. Dow Jones futures down more than 4 percent - RTRS
12.46pm BST12:4612.46pm BST12:46
This is turning into a major selloff -- the FTSE 100 is now down a whopping 275 points, or almost 4.5%, at 5914 points.This is turning into a major selloff -- the FTSE 100 is now down a whopping 275 points, or almost 4.5%, at 5914 points.
12.27pm BST12:2712.27pm BST12:27
FTSE 100 hits new lows, now down 3.5%FTSE 100 hits new lows, now down 3.5%
The rout is deepening.The rout is deepening.
The FTSE 100 just fell below the 6000 point-mark again, as traders react to predictions of a heavy selloff on Wall Street.The FTSE 100 just fell below the 6000 point-mark again, as traders react to predictions of a heavy selloff on Wall Street.
The blue-chip index is now down over 220 points or 3.5% at 5964 points, its lowest level since January 2013.The blue-chip index is now down over 220 points or 3.5% at 5964 points, its lowest level since January 2013.
If it finishes there, then more than £50bn would have been wiped off the collective value of the 100 companies on the index (we’ll get the official verdict after 4.30pm BST, when the market closes).If it finishes there, then more than £50bn would have been wiped off the collective value of the 100 companies on the index (we’ll get the official verdict after 4.30pm BST, when the market closes).
Anyone exposed to the resources sector has taken heavy losses. Commodity trader Glencore is down 6.7%, while mining giants Anglo American (-6.6%) and BHP Billiton (6.2%) are also leading the fallers.Anyone exposed to the resources sector has taken heavy losses. Commodity trader Glencore is down 6.7%, while mining giants Anglo American (-6.6%) and BHP Billiton (6.2%) are also leading the fallers.
Updated at 12.34pm BSTUpdated at 12.34pm BST
12.12pm BST12:1212.12pm BST12:12
Here we go, stock futures picking up losses as bleary-eyed New York wakes up. S&P 500 off 2.2%, DJIA down 2.5%, Nasdaq futures off 3.7%.Here we go, stock futures picking up losses as bleary-eyed New York wakes up. S&P 500 off 2.2%, DJIA down 2.5%, Nasdaq futures off 3.7%.
12.07pm BST12:0712.07pm BST12:07
Update: Traders are now calling the Dow Jones index down more than 400 points - a very chunky selloff, after China’s market tumbled by 8.5% earlier today.Update: Traders are now calling the Dow Jones index down more than 400 points - a very chunky selloff, after China’s market tumbled by 8.5% earlier today.
BREAKING: Dow Futures plunging 400+ points; S&P and Nasdaq Futures also steeply lower. http://t.co/84bqqVtnd0 pic.twitter.com/tmhVXcUh8JBREAKING: Dow Futures plunging 400+ points; S&P and Nasdaq Futures also steeply lower. http://t.co/84bqqVtnd0 pic.twitter.com/tmhVXcUh8J
12.05pm BST12:0512.05pm BST12:05
At its heart, today’s market panic shows that investors are losing faith in central banks’ ability to keep the show on the road.At its heart, today’s market panic shows that investors are losing faith in central banks’ ability to keep the show on the road.
So argues Jasper Lawler of CMC Markets, who writes:So argues Jasper Lawler of CMC Markets, who writes:
The People’s Bank of China has spectacularly failed to stimulate the Chinese economy, Europe’s whole recovery is based on a lower euro which was just undermined by the yuan devaluation and the US is experiencing its slowest post-recession recovery on record, despite huge stimulus.The People’s Bank of China has spectacularly failed to stimulate the Chinese economy, Europe’s whole recovery is based on a lower euro which was just undermined by the yuan devaluation and the US is experiencing its slowest post-recession recovery on record, despite huge stimulus.
Those stimulus measures involved ultra-low interest rates and massive bond-buying through quantitative easing.Those stimulus measures involved ultra-low interest rates and massive bond-buying through quantitative easing.
That drove many world stock markets to record highs in recent years, but didn’t resolve the underlying problems in the global economy.That drove many world stock markets to record highs in recent years, but didn’t resolve the underlying problems in the global economy.
Updated at 12.06pm BSTUpdated at 12.06pm BST
11.36am BST11:3611.36am BST11:36
Summary: Europe follows Asia's lead, sharply downwardsSummary: Europe follows Asia's lead, sharply downwards
Time for a recap, for anyone just tuning in on this dramatic day.Time for a recap, for anyone just tuning in on this dramatic day.
European stock markets have posted heavy falls this morning, after China’s stock market suffered its biggest plunge since the start of the financial crisis.European stock markets have posted heavy falls this morning, after China’s stock market suffered its biggest plunge since the start of the financial crisis.
In London, the FTSE 100 fell as low as 5995 points this morning, the first time it’s been below 6000 since the first trading day of 2013.In London, the FTSE 100 fell as low as 5995 points this morning, the first time it’s been below 6000 since the first trading day of 2013.
The Footsie is currently down 2.7%, or 169 points, at 6018, wiping more than £40bn off its value. Mining companies are worst hit, with many losing more than 5%.The Footsie is currently down 2.7%, or 169 points, at 6018, wiping more than £40bn off its value. Mining companies are worst hit, with many losing more than 5%.
Other European stock markets are also in retreat, with Germany’s DAX entering a bear market this morning.Other European stock markets are also in retreat, with Germany’s DAX entering a bear market this morning.
And Wall Street is expected to follow suit in three hours (at 9.30am local time, not 8.30am as I wrote earlier, sorry)And Wall Street is expected to follow suit in three hours (at 9.30am local time, not 8.30am as I wrote earlier, sorry)
Earlier, China’s stock market plunged 8.5% in another wave of selling, as concern grows that the country’s economy is weakening. Local media swiftly dubbed it “Black Monday”.Earlier, China’s stock market plunged 8.5% in another wave of selling, as concern grows that the country’s economy is weakening. Local media swiftly dubbed it “Black Monday”.
Related: European markets slide after China's 'Black Monday'Related: European markets slide after China's 'Black Monday'
One fund manager called it a “disaster”, which could drive many firms under.One fund manager called it a “disaster”, which could drive many firms under.
City analysts believe the People’s Bank of China will soon take action to pump more liquidity into the economy.City analysts believe the People’s Bank of China will soon take action to pump more liquidity into the economy.
The scale of the crash, though, is raising fears that Beijing is losing its grip on the crisis -- which Bloomberg says has wiped $5 trillion from global markets this month.The scale of the crash, though, is raising fears that Beijing is losing its grip on the crisis -- which Bloomberg says has wiped $5 trillion from global markets this month.
Asian markets were left reeling by the selloff in Shanghai, as they were dragged downwards in a wave of selling.Asian markets were left reeling by the selloff in Shanghai, as they were dragged downwards in a wave of selling.
China’s slowdown, the fall in commodity prices, and uncertainty over when the US Federal Reserve might raise US interest rates are all fuelling the selloff, according to Société Générale’s Kit Juckes.China’s slowdown, the fall in commodity prices, and uncertainty over when the US Federal Reserve might raise US interest rates are all fuelling the selloff, according to Société Générale’s Kit Juckes.
The oil price was hit too, hitting its lowest level since early 2009. US crude is now changing hands at just $38.85 per barrel, down 4% today.The oil price was hit too, hitting its lowest level since early 2009. US crude is now changing hands at just $38.85 per barrel, down 4% today.
Brent crude is down 3.8%, at $43.70 per barrel.Brent crude is down 3.8%, at $43.70 per barrel.
Updated at 11.46am BSTUpdated at 11.46am BST
11.10am BST11:1011.10am BST11:10
It’s shaping up to be a rough day on Wall Street.It’s shaping up to be a rough day on Wall Street.
The Dow Jones index is predicted to shed 300 points, or 1.8%, when the New York stock market opens at 2.30pm BST (The Dow Jones index is predicted to shed 300 points, or 1.8%, when the New York stock market opens at 2.30pm BST (
8.30am8.30am
9.30am on the east coast). 9.30am on the east coast).
That follows a nasty selloff on Friday, in which the Dow tumbled by 530 points.That follows a nasty selloff on Friday, in which the Dow tumbled by 530 points.
Wall Street prepped for another meltdown as Dow futures crash in excess of 300 points http://t.co/qw140Ecx8n pic.twitter.com/z2n4jXcYTcWall Street prepped for another meltdown as Dow futures crash in excess of 300 points http://t.co/qw140Ecx8n pic.twitter.com/z2n4jXcYTc
Updated at 11.36am BSTUpdated at 11.36am BST
11.02am BST11:0211.02am BST11:02
August is often a cruel month for investors, but this year has been particularly grim.August is often a cruel month for investors, but this year has been particularly grim.
According to Reuters, it’s on track to be the worst month since the height of the crisis.According to Reuters, it’s on track to be the worst month since the height of the crisis.
Over $1 trillion wiped off top European shares in August. FTSEuroFirst -12%, eyes worst month since Oct 2008. HT @asmo17 @LLaurentReutersOver $1 trillion wiped off top European shares in August. FTSEuroFirst -12%, eyes worst month since Oct 2008. HT @asmo17 @LLaurentReuters
10.42am BST10:4210.42am BST10:42
More than £40bn wiped off FTSE 100 so far todayMore than £40bn wiped off FTSE 100 so far today
This morning’s selloff has wiped more than £40bn off the value of Britain’s blue-chip stock index since trading began less than three hours ago.This morning’s selloff has wiped more than £40bn off the value of Britain’s blue-chip stock index since trading began less than three hours ago.
The FTSE 100 is currently down 145 points, a slump of 2.4%, with mining stocks continuing to be hit hardest. Glencore, Anglo American and BHP Billiton are all still down at least 5% [see earlier chart for more details].The FTSE 100 is currently down 145 points, a slump of 2.4%, with mining stocks continuing to be hit hardest. Glencore, Anglo American and BHP Billiton are all still down at least 5% [see earlier chart for more details].
That’s on top of the £46bn fall suffered on Friday, helping to send Europe’s stocks down €230bn today alone.That’s on top of the £46bn fall suffered on Friday, helping to send Europe’s stocks down €230bn today alone.
The 15% decline in the FTSE 100 since April is obviously a blow to pensions funds, asset managers and speculators. But this selloff is also hitting small investors, perhaps those with an ISA, or even a Child Trust Fund exposed to the stock market.The 15% decline in the FTSE 100 since April is obviously a blow to pensions funds, asset managers and speculators. But this selloff is also hitting small investors, perhaps those with an ISA, or even a Child Trust Fund exposed to the stock market.
Chris Towner, director of FX advisory services at foreign currency firm HiFX, says China’s Black Monday is spreading alarm worldwide:Chris Towner, director of FX advisory services at foreign currency firm HiFX, says China’s Black Monday is spreading alarm worldwide:
“Risk aversion is back in the financial markets.“Risk aversion is back in the financial markets.
A combination of threats of tightening monetary policy in the US and UK with China slowing has created nervousness and this nervousness is now spreading to panic.”A combination of threats of tightening monetary policy in the US and UK with China slowing has created nervousness and this nervousness is now spreading to panic.”
Updated at 10.52am BSTUpdated at 10.52am BST
10.30am BST10:3010.30am BST10:30
Here’s a remarkable fact - more than $5 trillion has been wiped off the value of global stock markets since Beijing devalued the yuan a fortnight ago.Here’s a remarkable fact - more than $5 trillion has been wiped off the value of global stock markets since Beijing devalued the yuan a fortnight ago.
The yuan devaluation was the trigger for the current market mayhem, as it fuelled fears that China’s economy was in worse shape than authorities admitted.The yuan devaluation was the trigger for the current market mayhem, as it fuelled fears that China’s economy was in worse shape than authorities admitted.
Updated at 10.30am BSTUpdated at 10.30am BST
10.06am BST10:0610.06am BST10:06
ING: Chinese central bank must act soonING: Chinese central bank must act soon
Analysts at ING believe the Chinese central bank will soon be forced to take new steps to shore up confidence, after seeing the Shanghai stock market plunge 8.5% today.Analysts at ING believe the Chinese central bank will soon be forced to take new steps to shore up confidence, after seeing the Shanghai stock market plunge 8.5% today.
While today’s market rout is obviously alarming, the big fear among policymakers is that capital is flowing out of China as its economy deteriorates. This would trigger a damaging liquidity shortage in the country’s financial sector.While today’s market rout is obviously alarming, the big fear among policymakers is that capital is flowing out of China as its economy deteriorates. This would trigger a damaging liquidity shortage in the country’s financial sector.
The People’s Bank of China took action last week to address this issue, and ING predicts it will soon slash lending requirements.The People’s Bank of China took action last week to address this issue, and ING predicts it will soon slash lending requirements.
They write:They write:
We infer from last week’s double-barrel PBOC liquidity injection that capital outflows are big and may persist.We infer from last week’s double-barrel PBOC liquidity injection that capital outflows are big and may persist.
There is nothing on the horizon but another round of the PBOC easing that could stem capital outflows.There is nothing on the horizon but another round of the PBOC easing that could stem capital outflows.
We believe a 50-100bp RRR cut is imminent.We believe a 50-100bp RRR cut is imminent.
China’s RRR, or reserve requirement ratio, limits how much money banks are forced to hold onto rather then lending it on. So lowering the RRR would effectively pump more money into the economy.China’s RRR, or reserve requirement ratio, limits how much money banks are forced to hold onto rather then lending it on. So lowering the RRR would effectively pump more money into the economy.
9.45am BST09:459.45am BST09:45
9.40am BST09:409.40am BST09:40
Around €230bn has been wiped off the value of Europe’s 300 largest companies this morning, calculates Tara Cunningham of the Daily Telegraph.Around €230bn has been wiped off the value of Europe’s 300 largest companies this morning, calculates Tara Cunningham of the Daily Telegraph.
Mayhem in them European markets this morning, as €230bn has been wiped off the pan-European FTSEurofirst 300 pic.twitter.com/CNyh3IaZivMayhem in them European markets this morning, as €230bn has been wiped off the pan-European FTSEurofirst 300 pic.twitter.com/CNyh3IaZiv
9.38am BST09:389.38am BST09:38
The market turbulence is likely to make it impossible for the US Federal Reserve to raise interest rates this month, predicts Simon Smith, chief economist at FXPro.The market turbulence is likely to make it impossible for the US Federal Reserve to raise interest rates this month, predicts Simon Smith, chief economist at FXPro.
He says:He says:
The prospects of an increase in rates from the Fed in September look very slim indeed at this point in time.The prospects of an increase in rates from the Fed in September look very slim indeed at this point in time.
Uncertainty over the Fed’s next move has been a contributing factor to the recent falls in global stock markets.Uncertainty over the Fed’s next move has been a contributing factor to the recent falls in global stock markets.
9.37am BST09:379.37am BST09:37
The FTSE 100 has now lost 15% since hitting a record high of 7104 points in April.The FTSE 100 has now lost 15% since hitting a record high of 7104 points in April.
Another 5% and it will be a Bear Market:Another 5% and it will be a Bear Market:
Another 300pt+ fall in the #FTSE from today's low and we would be in a #BearMarket. #GreatfallofchinaAnother 300pt+ fall in the #FTSE from today's low and we would be in a #BearMarket. #Greatfallofchina
9.28am BST09:289.28am BST09:28
Over in Hong Kong, the Hang Seng Index has just closed down 5.2% at 21,251.57 points, its lowest point since March 2014.Over in Hong Kong, the Hang Seng Index has just closed down 5.2% at 21,251.57 points, its lowest point since March 2014.
That’s the Hang Seng’s seventh daily fall in a row, reflecting market worries over China’s slowing economy....and Beijing’s ability to handle it.That’s the Hang Seng’s seventh daily fall in a row, reflecting market worries over China’s slowing economy....and Beijing’s ability to handle it.
9.22am BST09:229.22am BST09:22
Alarm over the global economy has driven the oil price down to its lowest level since the global recession began.Alarm over the global economy has driven the oil price down to its lowest level since the global recession began.
A barrel of US crude oil now costs just $39.33 per barrel, the cheapest since early 2009.A barrel of US crude oil now costs just $39.33 per barrel, the cheapest since early 2009.
Yann Quelenn, market analyst at Swissquote, reckons oil has further to fall:Yann Quelenn, market analyst at Swissquote, reckons oil has further to fall:
We consider that the decline in the oil prices will continue. Fears of oversupply cause plunge of oil to continue.We consider that the decline in the oil prices will continue. Fears of oversupply cause plunge of oil to continue.
Updated at 9.22am BSTUpdated at 9.22am BST
9.11am BST09:119.11am BST09:11
Beijing's credibility hit by market mayhemBeijing's credibility hit by market mayhem
Fraser Howie, the co-author of Red Capitalism: The Fragile Financial Foundation of China’s Extraordinary Rise, said Beijing’s handling of the stock market calamity raised real questions about the leadership of president Xi Jinping and prime minister Li Keqiang.Fraser Howie, the co-author of Red Capitalism: The Fragile Financial Foundation of China’s Extraordinary Rise, said Beijing’s handling of the stock market calamity raised real questions about the leadership of president Xi Jinping and prime minister Li Keqiang.
Our colleague Tom Phillips reports:Our colleague Tom Phillips reports:
“I think there is now growing realisation – domestically and offshore - that the Chinese leadership are not in control of the situation. Not only are they not in control of it, they don’t even seem to grasp the problems at times,” Howie said.“I think there is now growing realisation – domestically and offshore - that the Chinese leadership are not in control of the situation. Not only are they not in control of it, they don’t even seem to grasp the problems at times,” Howie said.
“The real casualty over the summer is the government’s credibility. When you look at the stock market intervention, when you look at the FX botch as I would call it a couple of weeks ago, and then you look at the Tianjin blasts, you see a government that is most certainly not in control. You look at this and it sends a very poor picture about China’s competency at the leadership level. Who else is responsible here? Xi Jinping seems invisible.”“The real casualty over the summer is the government’s credibility. When you look at the stock market intervention, when you look at the FX botch as I would call it a couple of weeks ago, and then you look at the Tianjin blasts, you see a government that is most certainly not in control. You look at this and it sends a very poor picture about China’s competency at the leadership level. Who else is responsible here? Xi Jinping seems invisible.”
“There are no short term fixes for what China is going through,” Howie added.“There are no short term fixes for what China is going through,” Howie added.
“This is ultimately a painful unwinding of imbalances and leverage in the system and those processes are always tough and sore. It’s a bit like saying what’s a quick solution to my hangover?“This is ultimately a painful unwinding of imbalances and leverage in the system and those processes are always tough and sore. It’s a bit like saying what’s a quick solution to my hangover?
And that is exactly where China is at the moment. There are no quick solutions.”And that is exactly where China is at the moment. There are no quick solutions.”
9.07am BST09:079.07am BST09:07
The “fog of fear” over the state of the Chinese economy is thickening over European stock markets, warns Connor Campbell of City firm Spreadex.The “fog of fear” over the state of the Chinese economy is thickening over European stock markets, warns Connor Campbell of City firm Spreadex.
Here’s a flavour of his morning research note.Here’s a flavour of his morning research note.
The Shanghai Composite, the continual epicentre of the markets’ recent woes, fell by over 8.5% this morning, setting off a chain of losses that included the biggest one-day sell off in over 2 years for the Nikkei and over 6 years for the Australian Securities Exchange.The Shanghai Composite, the continual epicentre of the markets’ recent woes, fell by over 8.5% this morning, setting off a chain of losses that included the biggest one-day sell off in over 2 years for the Nikkei and over 6 years for the Australian Securities Exchange.
The People’s Bank of China remains in ‘see what sticks’ mode, and so far nothing has been able to provide an adequate tourniquet for the market-wide bloodshed that has only intensified this Monday. The latest move by the PBOC saw the central bank announce that local government-managed pension funds will be able to invest in the markets for the first time, in an attempt to pour billions of yuan into an equity market that is currently drowning in losses.The People’s Bank of China remains in ‘see what sticks’ mode, and so far nothing has been able to provide an adequate tourniquet for the market-wide bloodshed that has only intensified this Monday. The latest move by the PBOC saw the central bank announce that local government-managed pension funds will be able to invest in the markets for the first time, in an attempt to pour billions of yuan into an equity market that is currently drowning in losses.
However this move only inspired panic not peace, and the fervent selling, with investors fleeing in droves, infected the Western indices from the moment the bell rang....However this move only inspired panic not peace, and the fervent selling, with investors fleeing in droves, infected the Western indices from the moment the bell rang....
Morning Market Comment: The Shanghai Composite, the continual epicentre of the markets’ recent woes, fel... http://t.co/epHb6cpMF9Morning Market Comment: The Shanghai Composite, the continual epicentre of the markets’ recent woes, fel... http://t.co/epHb6cpMF9
8.57am BST08:578.57am BST08:57
Stock markets are gripped by a “deep funk”, says Kit Juckes of French bank Société Générale.Stock markets are gripped by a “deep funk”, says Kit Juckes of French bank Société Générale.
Kit identifies three key factors behind today’s rout:Kit identifies three key factors behind today’s rout:
Commodity prices have hit their lowest levels in 16 years, thanks to the Chinese slowdown. And that is making traders very worried, as Kit explains:Commodity prices have hit their lowest levels in 16 years, thanks to the Chinese slowdown. And that is making traders very worried, as Kit explains:
The divergence between global commodity prices and equities is not a new theme but the danger now is that they begin to re-correlate - as they did when the dotcom bubble burst in 2000 and what had previously been an emerging market crisis became a US recession.The divergence between global commodity prices and equities is not a new theme but the danger now is that they begin to re-correlate - as they did when the dotcom bubble burst in 2000 and what had previously been an emerging market crisis became a US recession.
And @kitjuckes defines markets today like no other: 'deep funk'And @kitjuckes defines markets today like no other: 'deep funk'
8.43am BST08:438.43am BST08:43
Mining companies hit by China panicMining companies hit by China panic
Shares in mining companies are being hammered this morning, taking the brunt of this morning’s selloff in the City.Shares in mining companies are being hammered this morning, taking the brunt of this morning’s selloff in the City.
Anglo America, which produces iron ore, copper, manganese, nickel and coal, has slumped by 6%.Anglo America, which produces iron ore, copper, manganese, nickel and coal, has slumped by 6%.
Glencore, the commodity trading giant, is close behind, along with silver producer Fresnillo and then BHP Billiton.Glencore, the commodity trading giant, is close behind, along with silver producer Fresnillo and then BHP Billiton.
The mining sector is clearly exposed to China’s slowing economy. But today’s sell-off has spread much wider -- every company on the FTSE 100 has fallen this morning.The mining sector is clearly exposed to China’s slowing economy. But today’s sell-off has spread much wider -- every company on the FTSE 100 has fallen this morning.
Tony Cross, market analyst of Trustnet, says:Tony Cross, market analyst of Trustnet, says:
Any hopes that the last week of August would pass off in unremarkable fashion for equity traders has been dashed as the London market opened for business....Any hopes that the last week of August would pass off in unremarkable fashion for equity traders has been dashed as the London market opened for business....
Panic is genuinely gripping the mining stocks which collectively have dumped £5bn of value already this morning.Panic is genuinely gripping the mining stocks which collectively have dumped £5bn of value already this morning.
8.24am BST08:248.24am BST08:24
Chinese market suffers biggest fall since 2007Chinese market suffers biggest fall since 2007
Investors in Beijing can finally take a breather after the worst day’s trading since the start of the global financial crisis eight years ago.Investors in Beijing can finally take a breather after the worst day’s trading since the start of the global financial crisis eight years ago.
After a dramatic day’s trading, the Shanghai Composite index has just closed down a jaw-dropping 8.5%, at 3209 points.After a dramatic day’s trading, the Shanghai Composite index has just closed down a jaw-dropping 8.5%, at 3209 points.
That’s its biggest one-day slump since 2007, explaining why Chinese media were quick to dub today Black Monday.That’s its biggest one-day slump since 2007, explaining why Chinese media were quick to dub today Black Monday.
The Shanghai stock market has now lost all its gains this year. Umpteen stocks were suspended today after falling 10% - the maximum allowed under Beijing’s rules.The Shanghai stock market has now lost all its gains this year. Umpteen stocks were suspended today after falling 10% - the maximum allowed under Beijing’s rules.
And there could be worse days ahead, analysts predict, as fears grow that the Chinese economy is heading for a hard landing.And there could be worse days ahead, analysts predict, as fears grow that the Chinese economy is heading for a hard landing.
Bloomberg reports:Bloomberg reports:
“This is a real disaster and it seems nothing can stop it,” said Chen Gang, Shanghai-based chief investment officer at Heqitongyi Asset Management Co.“This is a real disaster and it seems nothing can stop it,” said Chen Gang, Shanghai-based chief investment officer at Heqitongyi Asset Management Co.
“If we don’t cut holdings ourselves, the fund faces risk of forced closure. Many newly started private funds suffered that recently. I hope we can survive.”“If we don’t cut holdings ourselves, the fund faces risk of forced closure. Many newly started private funds suffered that recently. I hope we can survive.”
8.15am BST08:158.15am BST08:15
The FTSE 100 just slumped below the 6,000 point mark for the first time since the start of 2013, in rather choppy trading:The FTSE 100 just slumped below the 6,000 point mark for the first time since the start of 2013, in rather choppy trading:
8.09am BST08:098.09am BST08:09
Germany’s stock market appears to have crashed into bear market territory, down more than 20% from its recent high.Germany’s stock market appears to have crashed into bear market territory, down more than 20% from its recent high.
Looks like a #bear market to me...-20% from April high on German stocks #DAX pic.twitter.com/7Ci4s2h45MLooks like a #bear market to me...-20% from April high on German stocks #DAX pic.twitter.com/7Ci4s2h45M
8.05am BST08:058.05am BST08:05
Across Europe, stock markets are deep in the red.Across Europe, stock markets are deep in the red.
Spain’s IBEX is down 3.3%, Italy’s FTSE MIB is down 3.%% and the Portuguese PSI 20 has shed 4.4%.Spain’s IBEX is down 3.3%, Italy’s FTSE MIB is down 3.%% and the Portuguese PSI 20 has shed 4.4%.
8.04am BST08:048.04am BST08:04
Germany’s DAX index has fallen by 3%, dropping below the 10,000 point mark for the first time since January.Germany’s DAX index has fallen by 3%, dropping below the 10,000 point mark for the first time since January.
8.03am BST08:038.03am BST08:03
FTSE 100 plunges 2.8% at the openFTSE 100 plunges 2.8% at the open
Trading is underway in the City, and shares are falling fast.Trading is underway in the City, and shares are falling fast.
The FTSE 100 index tumbled 2.8%, shedding 175 points to hit a low of 6012 points.The FTSE 100 index tumbled 2.8%, shedding 175 points to hit a low of 6012 points.
It’s now settling around 6030 points as traders flood the market with sell orders.It’s now settling around 6030 points as traders flood the market with sell orders.
7.57am BST07:577.57am BST07:57
I’m now handing over to Graeme Wearden in London. I’ll be back tomorrow. Thank you.I’m now handing over to Graeme Wearden in London. I’ll be back tomorrow. Thank you.
7.55am BST07:557.55am BST07:55
Just five minutes until the European stock markets open...Just five minutes until the European stock markets open...
FTSE set to open 188 points lower, at 6000. Out of hours Dow around 400 points lower than Friday's close, at 16,057.FTSE set to open 188 points lower, at 6000. Out of hours Dow around 400 points lower than Friday's close, at 16,057.
7.55am BST07:557.55am BST07:55
Oliver HolmesOliver Holmes
Thailand’s stock exchange has been hit by the global selloff, dropping 3.84%, or 52.43 points, to 1,313.18.Thailand’s stock exchange has been hit by the global selloff, dropping 3.84%, or 52.43 points, to 1,313.18.
The stock exchange in Thailand also suffered last week following a bomb attack at a Hindu shrine in the capital that killed 20, including tourists. The Thai economy is dependent on tourism revenues, accounting for up to 10% of GDP.The stock exchange in Thailand also suffered last week following a bomb attack at a Hindu shrine in the capital that killed 20, including tourists. The Thai economy is dependent on tourism revenues, accounting for up to 10% of GDP.
7.54am BST07:547.54am BST07:54
Here’s the official ASX 200 closing figure. Some $70bn has been lost from the market’s overall value, AAP reports, in the index’s worst one-day trading for six years. And it’s now at a two-year low.Here’s the official ASX 200 closing figure. Some $70bn has been lost from the market’s overall value, AAP reports, in the index’s worst one-day trading for six years. And it’s now at a two-year low.
Australian Stock Report head of research Chris Conway says the market could go lower if it drops below 5,000 points.Australian Stock Report head of research Chris Conway says the market could go lower if it drops below 5,000 points.
Right now, there is clearly some panic selling occurring and there is little in the way of technical support below the current market price.Right now, there is clearly some panic selling occurring and there is little in the way of technical support below the current market price.
Updated at 8.01am BSTUpdated at 8.01am BST
7.40am BST07:407.40am BST07:40
More strong comments from Rajiv Biswas, chief Asia economist for IHS Global Insight, who has been speaking to our man in Beijing. He says that the problem for investors is that the authorities in Beijing aren’t making a very good fist of dealing with this market business. As our the Guardian’s economics guru Larry Elliott wrote last week, it’s as if everyone is realising that China might not have all the answers.More strong comments from Rajiv Biswas, chief Asia economist for IHS Global Insight, who has been speaking to our man in Beijing. He says that the problem for investors is that the authorities in Beijing aren’t making a very good fist of dealing with this market business. As our the Guardian’s economics guru Larry Elliott wrote last week, it’s as if everyone is realising that China might not have all the answers.
Anyway, here’s what Rajiv has said:Anyway, here’s what Rajiv has said:
We have seen quite big corrections ever since the middle of June and it has created some policy responses from the Chinese government but up to they have been piecemeal. There hasn’t been any consolidated effort. It is almost as if they don’t really know what to do.We have seen quite big corrections ever since the middle of June and it has created some policy responses from the Chinese government but up to they have been piecemeal. There hasn’t been any consolidated effort. It is almost as if they don’t really know what to do.
That is adding to the negative sentiment. That is playing out in the stock market and it is also playing out in the commodities markets because as people fear Chinese growth is slowing down more, we are seeing the commodities sector also taking a further [move] downwards.That is adding to the negative sentiment. That is playing out in the stock market and it is also playing out in the commodities markets because as people fear Chinese growth is slowing down more, we are seeing the commodities sector also taking a further [move] downwards.
Updated at 7.43am BSTUpdated at 7.43am BST
7.40am BST07:407.40am BST07:40
Photos: Chinese investors watch 'Black Monday' unfoldPhotos: Chinese investors watch 'Black Monday' unfold
There were dark faces across brokerage houses in Beijing today as small investors watched shares tumble, dragging the Shanghai Composite index down over 8% in late trading.There were dark faces across brokerage houses in Beijing today as small investors watched shares tumble, dragging the Shanghai Composite index down over 8% in late trading.
Updated at 8.01am BSTUpdated at 8.01am BST
7.34am BST07:347.34am BST07:34
It’s closing time elsewhere.It’s closing time elsewhere.
7.30am BST07:307.30am BST07:30
The Philippines’ stock market has slumped over 7% today to a 14-month low, amid the global stock market rout.The Philippines’ stock market has slumped over 7% today to a 14-month low, amid the global stock market rout.
Updated at 7.30am BSTUpdated at 7.30am BST
7.25am BST07:257.25am BST07:25
Australian market closes down 4% – worst one-day fall for six yearsAustralian market closes down 4% – worst one-day fall for six years
The ASX 200 index was down 213.3 points, or 4.09% lower at 5,001.3. The broader All Ordinaries index was down 210.6 points, or 4.03%, at 5,014.2.The ASX 200 index was down 213.3 points, or 4.09% lower at 5,001.3. The broader All Ordinaries index was down 210.6 points, or 4.03%, at 5,014.2.
Updated at 8.00am BSTUpdated at 8.00am BST
7.23am BST07:237.23am BST07:23
7.22am BST07:227.22am BST07:22
Money is surging into German government debt, or bunds, this morning, as nervous investors brace for trouble ahead.Money is surging into German government debt, or bunds, this morning, as nervous investors brace for trouble ahead.
Buying bunds is a classic safe-haven trade – they don’t offer a very good interest rate, but you’re pretty well certain to get your money back.Buying bunds is a classic safe-haven trade – they don’t offer a very good interest rate, but you’re pretty well certain to get your money back.
Brutal #stock opening lined up for Europe...futures show 3% slumps in Germany/France & money into havens of German debt #selloffBrutal #stock opening lined up for Europe...futures show 3% slumps in Germany/France & money into havens of German debt #selloff
Updated at 7.28am BSTUpdated at 7.28am BST
7.19am BST07:197.19am BST07:19
The Aussie dollar has been sold heavily today. it’s currently buying US72.28c having dropped just over 1% since friday.The Aussie dollar has been sold heavily today. it’s currently buying US72.28c having dropped just over 1% since friday.
And it could get worse, some people think.And it could get worse, some people think.
7.17am BST07:177.17am BST07:17
Japan's Nikkei posts biggest fall since June 2013Japan's Nikkei posts biggest fall since June 2013
Japan’s Nikkei index has suffered its biggest one-day sell-off in over two years, after a day of hectic selling sparked by growing fears over China.Japan’s Nikkei index has suffered its biggest one-day sell-off in over two years, after a day of hectic selling sparked by growing fears over China.
The Tokyo stock market just closed with the Nikkei down 4.61%, its biggest one-day fall since June 2013.The Tokyo stock market just closed with the Nikkei down 4.61%, its biggest one-day fall since June 2013.
The Topix index, which includes more smaller Japanese companies, slumped by 5.8%. That puts the Topix into ‘correction territory’, down more than10% since its recent peak.The Topix index, which includes more smaller Japanese companies, slumped by 5.8%. That puts the Topix into ‘correction territory’, down more than10% since its recent peak.
#Japan | *JAPAN'S TOPIX SLUMPS MOST SINCE MAY 2013 TO ENTER CORRECTION pic.twitter.com/I7g8yy7Ts1#Japan | *JAPAN'S TOPIX SLUMPS MOST SINCE MAY 2013 TO ENTER CORRECTION pic.twitter.com/I7g8yy7Ts1
Updated at 7.59am BSTUpdated at 7.59am BST
7.14am BST07:147.14am BST07:14
More reaction via our man Tom Phillips in Beijing.More reaction via our man Tom Phillips in Beijing.
Rajiv Biswas, the chief Asia economist for IHS Global Insight, said Black Monday was one of the strongest signals yet that Beijing was not doing enough to tackle the crisis.Rajiv Biswas, the chief Asia economist for IHS Global Insight, said Black Monday was one of the strongest signals yet that Beijing was not doing enough to tackle the crisis.
The private money is all trying to get out of the market and what is holding up the market is only the government intervention.The private money is all trying to get out of the market and what is holding up the market is only the government intervention.
It’s been piecemeal efforts through the course of the year with several small cuts in interest rates, some fiscal stimulus measures scattered around in recent months.It’s been piecemeal efforts through the course of the year with several small cuts in interest rates, some fiscal stimulus measures scattered around in recent months.
But you haven’t seen any decisive action and there is no sense of determination coming out of policy makers that they want to turn the economy around.But you haven’t seen any decisive action and there is no sense of determination coming out of policy makers that they want to turn the economy around.
Updated at 7.43am BSTUpdated at 7.43am BST
7.10am BST07:107.10am BST07:10
For you Simpsons fans.For you Simpsons fans.
7.08am BST07:087.08am BST07:08
Australia's A&P/ASX 200 is down 3.73% at 5,020Australia's A&P/ASX 200 is down 3.73% at 5,020
The Australian market has had a shocker. The ASX 200 has closed down nearly 4% for its worst day for four years. It’s now at a two-year low.The Australian market has had a shocker. The ASX 200 has closed down nearly 4% for its worst day for four years. It’s now at a two-year low.
Updated at 7.29am BSTUpdated at 7.29am BST
7.06am BST07:067.06am BST07:06
Traders in Europe are bracing for a heavy sell-off when the stock markets open, in one hour’s time.Traders in Europe are bracing for a heavy sell-off when the stock markets open, in one hour’s time.
The FTSE 100 is currently expected to tumble below the 6000-point mark for the first time since the start of January 2013.The FTSE 100 is currently expected to tumble below the 6000-point mark for the first time since the start of January 2013.
Other European markets are heading for a bath – having already tumbled on Friday.Other European markets are heading for a bath – having already tumbled on Friday.
Our European opening calls: $FTSE 5981 down 206 $DAX 9711 down 413 $CAC 4472 down 159 $IBEX 9851 down 421 $MIB 20874 down 872Our European opening calls: $FTSE 5981 down 206 $DAX 9711 down 413 $CAC 4472 down 159 $IBEX 9851 down 421 $MIB 20874 down 872
The slowdown in China, and the surprise devaluation of the Chinese yuan this month, has forced investors into a sharp rethink.The slowdown in China, and the surprise devaluation of the Chinese yuan this month, has forced investors into a sharp rethink.
Ian Williams of Peel Hunt, the City stockbrokers, explains:Ian Williams of Peel Hunt, the City stockbrokers, explains:
Earnings-based valuations have retreated dramatically from their previous extended levels; the issue now is the extent to which concerns over global growth hamper the corporate profits outlook.Earnings-based valuations have retreated dramatically from their previous extended levels; the issue now is the extent to which concerns over global growth hamper the corporate profits outlook.
Updated at 7.27am BSTUpdated at 7.27am BST
6.57am BST06:576.57am BST06:57
Important again to remember that the Chinese market had more than doubled in value in the 18 months or so leading up to June. A 30% fall in recent weeks is not much when measured against a rise of 150% and you could argue it’s a natural correction.Important again to remember that the Chinese market had more than doubled in value in the 18 months or so leading up to June. A 30% fall in recent weeks is not much when measured against a rise of 150% and you could argue it’s a natural correction.
The respected Australian economist Saul Eslake believes the concerns about China, which are reflected in the sell-off there and overseas, are slightly overdone.The respected Australian economist Saul Eslake believes the concerns about China, which are reflected in the sell-off there and overseas, are slightly overdone.
He told Guardian Australia that the country’s growing service industry is gradually overtaking the manufacturing sector as a share of GDP. He also noted that the property market in the biggest cities is “stabilising” although the smaller cities were “still weak”.He told Guardian Australia that the country’s growing service industry is gradually overtaking the manufacturing sector as a share of GDP. He also noted that the property market in the biggest cities is “stabilising” although the smaller cities were “still weak”.
And he believed that the recent devaluation of the yuan was not an attempt to stimulate flagging exports but was a genuine attempt to reform the forex regime and to try to get ahead of any possible rate cut by the US Fed.And he believed that the recent devaluation of the yuan was not an attempt to stimulate flagging exports but was a genuine attempt to reform the forex regime and to try to get ahead of any possible rate cut by the US Fed.
It’s a move to be more flexible ahead of a Fed rate cut. The yuan is up 20% in trade-weighted terms so they wanted wriggle room if the Fed cuts rates and the US dollar rises.It’s a move to be more flexible ahead of a Fed rate cut. The yuan is up 20% in trade-weighted terms so they wanted wriggle room if the Fed cuts rates and the US dollar rises.
Updated at 7.09am BSTUpdated at 7.09am BST
6.35am BST06:356.35am BST06:35
He adds:He adds:
As investors see more selling they also want to get out.As investors see more selling they also want to get out.
He said the continued panic reflected a lack of faith in Beijing’s attempts to prop up the stock market.He said the continued panic reflected a lack of faith in Beijing’s attempts to prop up the stock market.
I think the sell down is probably going to continue for the next few sessions.I think the sell down is probably going to continue for the next few sessions.
Updated at 7.07am BSTUpdated at 7.07am BST
6.33am BST06:336.33am BST06:33
More reaction from my colleague Tom Phillips in Beijing, who’s been talking to market experts.More reaction from my colleague Tom Phillips in Beijing, who’s been talking to market experts.
Bernard Aw, a market analyst from IG in Singapore, has used the “P” word.Bernard Aw, a market analyst from IG in Singapore, has used the “P” word.
Risk sentiment is really on the verge of panic which is why we are seeing plenty of red screens.Risk sentiment is really on the verge of panic which is why we are seeing plenty of red screens.
Updated at 6.58am BSTUpdated at 6.58am BST
6.26am BST06:266.26am BST06:26
Shanghai Composite now down 8.7%Shanghai Composite now down 8.7%
Despite reasons for optimism, the authorities in Beijing are struggling to keep things under control.Despite reasons for optimism, the authorities in Beijing are struggling to keep things under control.
The Shanghai Comp is now down 8.7% at 3202. If it closes anywhere below 3233 points, it will have lost all its gains for the year.The Shanghai Comp is now down 8.7% at 3202. If it closes anywhere below 3233 points, it will have lost all its gains for the year.
Angus Nicholson of IG again:Angus Nicholson of IG again:
A disastrous result for China, after working so hard to breathe life back into domestic equities after the 2007 crash and having spent hundreds of billions of dollars propping up the market since June.A disastrous result for China, after working so hard to breathe life back into domestic equities after the 2007 crash and having spent hundreds of billions of dollars propping up the market since June.
Updated at 6.58am BSTUpdated at 6.58am BST
6.23am BST06:236.23am BST06:23
But as Angus Nicholson points out, you could argue that the world economic situation doesn’t really warrant this panic selling.But as Angus Nicholson points out, you could argue that the world economic situation doesn’t really warrant this panic selling.
The current global economic environment does not seem to warrant such a dramatic sell-off. Volumes in global markets are famously thin in August, possibly leading to these outsized moves. Investors will be looking to major news announcements this week that may change sentiment in global markets and provide a floor to these downward moves. Thursday will see the release of US GDP and PCE inflation data, the beginning of the Jackson Hole symposium, and the release of Japanese CPI data. Although if markets continue to decline at this rate until then, we could be seeing an even more serious correction than in 2010 or 2011.The current global economic environment does not seem to warrant such a dramatic sell-off. Volumes in global markets are famously thin in August, possibly leading to these outsized moves. Investors will be looking to major news announcements this week that may change sentiment in global markets and provide a floor to these downward moves. Thursday will see the release of US GDP and PCE inflation data, the beginning of the Jackson Hole symposium, and the release of Japanese CPI data. Although if markets continue to decline at this rate until then, we could be seeing an even more serious correction than in 2010 or 2011.
Updated at 6.57am BSTUpdated at 6.57am BST
6.18am BST06:186.18am BST06:18
Angus Nicholson, of IG Markets, has an interesting take on the day’s turmoil. He says the recent annual meeting of the country’s top leadership must have seen some pretty heavy chat about the economy with the country facing a momentous fork in the road.Angus Nicholson, of IG Markets, has an interesting take on the day’s turmoil. He says the recent annual meeting of the country’s top leadership must have seen some pretty heavy chat about the economy with the country facing a momentous fork in the road.
It is a key moment for China. The equity market in free fall, the banking system increasingly starved of liquidity, rising capital outflows, and a rapidly slowing economy. The annual meeting of the top leadership at Beidaihe has ended (one of the reasons Li Keqiang was delayed in visiting Tianjin), and no doubt there were very serious discussions over how the 7% growth target is going to be met. That target is now looking overly ambitious, and the most sensible way forward would seemingly involve further currency devaluation, further RRR cuts, and stepped up fiscal stimulus.It is a key moment for China. The equity market in free fall, the banking system increasingly starved of liquidity, rising capital outflows, and a rapidly slowing economy. The annual meeting of the top leadership at Beidaihe has ended (one of the reasons Li Keqiang was delayed in visiting Tianjin), and no doubt there were very serious discussions over how the 7% growth target is going to be met. That target is now looking overly ambitious, and the most sensible way forward would seemingly involve further currency devaluation, further RRR cuts, and stepped up fiscal stimulus.
Updated at 6.56am BSTUpdated at 6.56am BST
6.11am BST06:116.11am BST06:11
SummarySummary
It’s been a torrid day so far on financial markets across the Asia- Pacific on what Chinese media are calling “Black Monday”, in an echo of the infamous global stock market meltdown of 1987.It’s been a torrid day so far on financial markets across the Asia- Pacific on what Chinese media are calling “Black Monday”, in an echo of the infamous global stock market meltdown of 1987.
But the main points are these:But the main points are these:
Updated at 6.56am BSTUpdated at 6.56am BST
6.08am BST06:086.08am BST06:08
US and European markets set for a hammering againUS and European markets set for a hammering again
Stock futures for today’s trading in Europe and the US point to heavy losses again.Stock futures for today’s trading in Europe and the US point to heavy losses again.
The FTSE is pointing to lose more than 200 points and the Dow Jones 400.The FTSE is pointing to lose more than 200 points and the Dow Jones 400.
Updated at 6.30am BSTUpdated at 6.30am BST
5.54am BST05:545.54am BST05:54
5.53am BST05:535.53am BST05:53
It’s Black Monday with good reason. The Shanghai Composite is down 8.45% today.It’s Black Monday with good reason. The Shanghai Composite is down 8.45% today.
Takako Masai, the head of research at Shinsei Bank in Tokyo, said:Takako Masai, the head of research at Shinsei Bank in Tokyo, said:
Markets are panicking. Things are starting look like the Asian financial crisis in the late 1990s. Speculators are selling assets that seem the most vulnerable.Markets are panicking. Things are starting look like the Asian financial crisis in the late 1990s. Speculators are selling assets that seem the most vulnerable.
5.49am BST05:495.49am BST05:49
They’re calling it Black MondayThey’re calling it Black Monday
5.44am BST05:445.44am BST05:44
Taiwan market having worst ever dayTaiwan market having worst ever day
5.42am BST05:425.42am BST05:42
China to flood market with cash – reportChina to flood market with cash – report
This could be significant.This could be significant.
The Wall Street Journal is reporting that Chinese authorities have cracked and are about to flood the market with cash to halt the alarming fall in the country’s main stock markets and end jitters about its slowing economy.The Wall Street Journal is reporting that Chinese authorities have cracked and are about to flood the market with cash to halt the alarming fall in the country’s main stock markets and end jitters about its slowing economy.
This – if it happens – will be the cut in the reserve requirement ratio (RRR) that investors expected to come at the weekend.This – if it happens – will be the cut in the reserve requirement ratio (RRR) that investors expected to come at the weekend.
The expected move to free up more funds for lending – by reducing the deposits banks must hold in reserve – is directly aimed at countering the effects of a weaker currency, which could send more funds away from Beijing’s shores.The expected move to free up more funds for lending – by reducing the deposits banks must hold in reserve – is directly aimed at countering the effects of a weaker currency, which could send more funds away from Beijing’s shores.
Updated at 6.54am BSTUpdated at 6.54am BST
5.33am BST05:335.33am BST05:33
Not surprisingly, the Hang Seng index in Hong Kong is also having a torrid day, down more than 4%.Not surprisingly, the Hang Seng index in Hong Kong is also having a torrid day, down more than 4%.
5.29am BST05:295.29am BST05:29
In South Korea, another country very exposed to any slowdown in China, the benchmark Kospi index is down by nearly 3%.In South Korea, another country very exposed to any slowdown in China, the benchmark Kospi index is down by nearly 3%.
Last week South Korea said exports to China fell nearly 12% in the first 20 days of August from a year ago.Last week South Korea said exports to China fell nearly 12% in the first 20 days of August from a year ago.
Updated at 6.53am BSTUpdated at 6.53am BST
5.22am BST05:225.22am BST05:22
Gold is doing OK, though, as people seek some shelter from the storm.Gold is doing OK, though, as people seek some shelter from the storm.
It’s close to a seven-week high at $1160.80 an ounce but traders think it could rally to $1200 an ounce, a level last seen in June.It’s close to a seven-week high at $1160.80 an ounce but traders think it could rally to $1200 an ounce, a level last seen in June.
Updated at 6.52am BSTUpdated at 6.52am BST
5.14am BST05:145.14am BST05:14
... and copper.... and copper.
Updated at 5.22am BSTUpdated at 5.22am BST
5.12am BST05:125.12am BST05:12
It’s not just shares and currencies that are struggling, of course. Commodities are taking a real pounding as expectations of less demand from China weigh on investors.It’s not just shares and currencies that are struggling, of course. Commodities are taking a real pounding as expectations of less demand from China weigh on investors.
Oil ...Oil ...
Updated at 6.52am BSTUpdated at 6.52am BST
5.09am BST05:095.09am BST05:09
Australian dollar fallsAustralian dollar falls
More from the other markets around Asia in a minute, but just a quick one on the Australian dollar, which is trading at US72.55 cents, down from 73.02 cents on Friday.More from the other markets around Asia in a minute, but just a quick one on the Australian dollar, which is trading at US72.55 cents, down from 73.02 cents on Friday.
Stephen Innes, of Oanda Australia and Asia Pacific, said the Aussie was again being hit by concerns about a weaker Chinese economy having a knock-on effect on Australian exports.Stephen Innes, of Oanda Australia and Asia Pacific, said the Aussie was again being hit by concerns about a weaker Chinese economy having a knock-on effect on Australian exports.
Updated at 6.51am BSTUpdated at 6.51am BST
5.02am BST05:025.02am BST05:02
Updated at 5.05am BSTUpdated at 5.05am BST
5.00am BST05:005.00am BST05:00
4.57am BST04:574.57am BST04:57
Nikkei in Japan now down 4.25%Nikkei in Japan now down 4.25%
Updated at 5.05am BSTUpdated at 5.05am BST
4.52am BST04:524.52am BST04:52
BlueScope may cut at least 500 steel jobsBlueScope may cut at least 500 steel jobs
Away from the markets – but still with China – and the Australian steel producer BlueScope says it might have to shed 500 jobs because weakening demand from the world’s second biggest economy had created massive oversupply.Away from the markets – but still with China – and the Australian steel producer BlueScope says it might have to shed 500 jobs because weakening demand from the world’s second biggest economy had created massive oversupply.
The Port Kembla-based company said the future of the steel works was “on a knife-edge”.The Port Kembla-based company said the future of the steel works was “on a knife-edge”.
The chief executive, Paul O’Malley, said demand in China had grown nearly six-fold in 15 years but had recently plateaued, moving the country’s producers to treble exports on 2010-14 levels. He said prices had fallen 46% in that time and a third of global capacity was sitting unused.The chief executive, Paul O’Malley, said demand in China had grown nearly six-fold in 15 years but had recently plateaued, moving the country’s producers to treble exports on 2010-14 levels. He said prices had fallen 46% in that time and a third of global capacity was sitting unused.
When there’s oversupply and a shortage of demand – and the equivalent of an extra 50 Port Kemblas on the market globally – you know you have to respond to international competitive pressures.When there’s oversupply and a shortage of demand – and the equivalent of an extra 50 Port Kemblas on the market globally – you know you have to respond to international competitive pressures.
Updated at 6.50am BSTUpdated at 6.50am BST
4.47am BST04:474.47am BST04:47
One of the biggest fallers has been Andrew Forrest’s Fortescue Metals Group.One of the biggest fallers has been Andrew Forrest’s Fortescue Metals Group.
Its shares have plunged 12.79% after the company announced a 88% fall in profits this morning on the back of plunging iron ore prices.Its shares have plunged 12.79% after the company announced a 88% fall in profits this morning on the back of plunging iron ore prices.
That’s an ugly figure and while the company expects things to look up in the current year when the benefits of hefty cost-cutting kicks in, FMG’s huge exposure to China does not help. Not long ago Forrest was talking gamely about how China’s demand for iron ore felt limitless.That’s an ugly figure and while the company expects things to look up in the current year when the benefits of hefty cost-cutting kicks in, FMG’s huge exposure to China does not help. Not long ago Forrest was talking gamely about how China’s demand for iron ore felt limitless.
Australian Mining reported him last year as saying:Australian Mining reported him last year as saying:
A bet against China is the only guarantee of loss I’ve seen for a long time ... 400m people still have to be urbanised.A bet against China is the only guarantee of loss I’ve seen for a long time ... 400m people still have to be urbanised.
That view is obviously being quite strenuously tested now as assumptions about growth in China are reassessed.That view is obviously being quite strenuously tested now as assumptions about growth in China are reassessed.
Updated at 6.49am BSTUpdated at 6.49am BST
4.35am BST04:354.35am BST04:35
Biggest one-day fall in Australia for four yearsBiggest one-day fall in Australia for four years
It’s the biggest one-day fall since September 2011 on the Australian market, according to AAP, and it’s taken a whopping $60bn off the overall market value.It’s the biggest one-day fall since September 2011 on the Australian market, according to AAP, and it’s taken a whopping $60bn off the overall market value.
Updated at 4.43am BSTUpdated at 4.43am BST
4.27am BST04:274.27am BST04:27
4.26am BST04:264.26am BST04:26
4.23am BST04:234.23am BST04:23
For a good summary of where we’re at across the region today, my colleague Justin McCurry has sent this dispatch from Tokyo. Here’s how he starts:For a good summary of where we’re at across the region today, my colleague Justin McCurry has sent this dispatch from Tokyo. Here’s how he starts:
Fears of a slowdown in the Chinese economy sent Asia-Pacific stocks plummeting on Monday, days after Wall Street suffered its biggest one-day loss in almost four years.Fears of a slowdown in the Chinese economy sent Asia-Pacific stocks plummeting on Monday, days after Wall Street suffered its biggest one-day loss in almost four years.
Updated at 6.47am BSTUpdated at 6.47am BST
4.20am BST04:204.20am BST04:20
Worth remembering, though, that the Chinese stock market had risen a massive 150% in the past 18 months. In that context a drop of 30% in the past couple of months is nothing to be worried about.Worth remembering, though, that the Chinese stock market had risen a massive 150% in the past 18 months. In that context a drop of 30% in the past couple of months is nothing to be worried about.
After all, the optimists say, the country is still growing by as much as 7% (maybe 4% if you don’t believe the figures), the service sector is beginning to make up for an admittedly weakening manufacturing sector and there are still millions of people to bring out of poverty.After all, the optimists say, the country is still growing by as much as 7% (maybe 4% if you don’t believe the figures), the service sector is beginning to make up for an admittedly weakening manufacturing sector and there are still millions of people to bring out of poverty.
As the American economist Nicholas Lardy told the Australian:As the American economist Nicholas Lardy told the Australian:
The sceptics have taken insufficient notice of China’s progress in transitioning to its new model of economic growth, one less dependent on expanding industrial output, investment and exports and more dependent on expanding private consumption expenditure.The sceptics have taken insufficient notice of China’s progress in transitioning to its new model of economic growth, one less dependent on expanding industrial output, investment and exports and more dependent on expanding private consumption expenditure.
Updated at 6.47am BSTUpdated at 6.47am BST
4.06am BST04:064.06am BST04:06
'There's no good news''There's no good news'
An analyst in Shanghai, Qi Yifeng, at consultancy CEBM, put it quite pithily to Reuters:An analyst in Shanghai, Qi Yifeng, at consultancy CEBM, put it quite pithily to Reuters:
The market is in a downtrend. There’s no good news, stocks are still expensive, and there’s no fresh money coming in. With no RRR [reserve requirement] cut over the weekend, the market will directly head south.The market is in a downtrend. There’s no good news, stocks are still expensive, and there’s no fresh money coming in. With no RRR [reserve requirement] cut over the weekend, the market will directly head south.
Updated at 6.46am BSTUpdated at 6.46am BST
4.04am BST04:044.04am BST04:04
After starting to devalue the yuan two weeks ago caused further selling on its main stock exchanges, investors expected Beijing to introduce some more calming measures at the weekend.After starting to devalue the yuan two weeks ago caused further selling on its main stock exchanges, investors expected Beijing to introduce some more calming measures at the weekend.
But despite new rules allowing pension funds to invest in the stock market – quite a good idea on the face of it and another step towards reforming the financial system in China – the market has been sold heavily today and is down 7.92%.But despite new rules allowing pension funds to invest in the stock market – quite a good idea on the face of it and another step towards reforming the financial system in China – the market has been sold heavily today and is down 7.92%.
Updated at 6.45am BSTUpdated at 6.45am BST
3.53am BST03:533.53am BST03:53
Seems sensible to look first in more depth at what’s happening in China this morning given that most people agree that’s where the problems are stemming from.Seems sensible to look first in more depth at what’s happening in China this morning given that most people agree that’s where the problems are stemming from.
For an expert analysis of the background I can point you to the Guardian’s economics brains trust of Larry Elliott and Philip Inman who wrote at the weekend about how concerns about China’s slowing economy will spread to other emerging markets. Here’s a snippet.For an expert analysis of the background I can point you to the Guardian’s economics brains trust of Larry Elliott and Philip Inman who wrote at the weekend about how concerns about China’s slowing economy will spread to other emerging markets. Here’s a snippet.
The problem is a relatively simple one. In the post-great recession world, the tendency has been for all countries to try to export their way out of trouble. But this model works only if the exports can find a home, as they did when China was growing at double-digit rates.The problem is a relatively simple one. In the post-great recession world, the tendency has been for all countries to try to export their way out of trouble. But this model works only if the exports can find a home, as they did when China was growing at double-digit rates.
But in the past 18 months, the Chinese economy has slowed, causing problems for two distinct groups of emerging-market economies: the east Asian countries that sell components and finished goods to their big neighbour, and countries that supply China with the fuel and raw materials to keep its industrial machine going.But in the past 18 months, the Chinese economy has slowed, causing problems for two distinct groups of emerging-market economies: the east Asian countries that sell components and finished goods to their big neighbour, and countries that supply China with the fuel and raw materials to keep its industrial machine going.
Updated at 6.45am BSTUpdated at 6.45am BST
3.46am BST03:463.46am BST03:46
SummarySummary
It’s pretty grim out there so I’ll set out the main points so far:It’s pretty grim out there so I’ll set out the main points so far:
Hold on to those hats.Hold on to those hats.
Updated at 6.44am BSTUpdated at 6.44am BST
3.36am BST03:363.36am BST03:36
Global rout intensifiesGlobal rout intensifies
Good afternoon and welcome to the markets live blog. It’s been a very lively morning across the Asia-Pacific region following on from last week’s China-inspired heavy selling here and on Wall Street and in Europe on Friday.Good afternoon and welcome to the markets live blog. It’s been a very lively morning across the Asia-Pacific region following on from last week’s China-inspired heavy selling here and on Wall Street and in Europe on Friday.
Stock markets, commodities and currencies are being smashed.Stock markets, commodities and currencies are being smashed.
Updated at 6.42am BSTUpdated at 6.42am BST