Britain’s benchmark index falls into correction territory as US stocks suffer biggest fall since February 2014
The FTSE 100 fell into official correction territory on Thursday, one point shy of January’s year-low hit, after an eighth consecutive day of losses.
Fraught with concerns about slowing growth in China and the after-effects of last week’s devaluation of the yuan, investors fled to the side lines, bringing this week’s losses to 2.5pc. The FTSE 100 closed 35.56 lower at 6,367.89.
Britain’s benchmark index has now fallen by 10.4pc since a high in April of 7,104 to officially tumble into correction. The rally earlier this year was driven by quantitative easing in Europe. However, the index has since been plagued by political instability in Greece and the slowdown in China.
US stocks also tumbled on Thursday. The Dow Jones industrial average fell below the psychologically important 17,000 level, finishing down 2pc at 16,990.69, while the broader S&P 500 suffered its biggest fall since February 2014, closing down 2.1pc, at 2,035.73.
David Madden, of IG, said: “It used to be just Australia that would catch a cold when China sneezed, but the Chinese sell-off is far more infectious than initially thought.”
Full article: Global markets tumble as commodity prices fall into ‘death spiral’ (The Telegraph)