FTSE dips below 6,000 as China fears wipe £46bn off market - LIVE
For the second time in a week China has been forced to suspend stock trading after Shanghai Index plunges more than 7pc
• Chinese stock market plunges more than 7pc
• Automatic suspension of trading kicks in again
• Comes as China accelerates the depreciation of the yuan
• Follows Monday's suspension, which rocked global markets
• Oil drops to $32 a barrel
• More than £46bn wiped off Britain's leading companies
• Automatic suspension of trading kicks in again
• Comes as China accelerates the depreciation of the yuan
• Follows Monday's suspension, which rocked global markets
• Oil drops to $32 a barrel
• More than £46bn wiped off Britain's leading companies
10:31
"Circuit breaker" makes it mark on 2016
China's new 'circuit-breaker' mechanism was introduced on January 1 to curb volatility in Chinese stock markets.
10:20
Global shares hit three-month low
MSCI's 46-country all world index slipped by 1pc this morning, dragging global shares to a three-month low.
The global index has now fallen for six consecutive trading sessions as investors are plagued by worries about China's ailing economy and geopolitical tensions.
The benchmark emerging stock index also hit a six-and-a-half year low as investors offloaded risky assets.
It's worth noting China isn't the only emerging market currency that has weakened since the start of 2016.
10:07
Is it game over for China?
Many analysts are not confident about the state of the Chinese economy after it guided the yuan lower and Shanghai shares plunged 7pc.
After just half an hour of trading, Chinese stock trading was suspended for a second time this week.
As global shares tumbled for a sixth day in a row and oil prices continued to slide, Joshua Mahony, of IG, warned: "no one knows where this rout will stop and as of yet, the Chinese regulators have yet to show they can instil confidence in any way other than to install draconian measures that limit the function."
"For many in the City, there was a feeling that the show was over before it begun."
09:51
Another disastrous close: Hong Kong stocks plummet
Hong Kong stocks closed this morning at 20,333 - a hefty one day fall of 3.1pc - after China accelerated the depreciation of the yuan - sending shock waves through global financial markets.
Dominic Rossi, of Fidelity International, said: “Global equity markets are now battling the third wave of deflation since 2008.
"The epicentre is not within the developed world nor the financial system but, this time, within the developing world and the global manufacturing sector, where capital allocation has been poor and where overcapacity is rife."
09:40
Yes, everyone loves "a good trendline"
Sterling has eased back ever so slightly after slipping to a five-and-a-half year low earlier this morning.
GBP is currently at $1.4580.
09:26
And so the carnage continues - £46bn down and counting
Things are escalating quickly across financial markets this morning.
Since 8am, the FTSE 100 has fallen 182.9 points, or 3pc, to 5,891.14. Britain's biggest companies have now lost more than £46bn in morning trade. In 2015, some £80bn was wiped off the index.
European bourses are also nursing hefty losses. The German DAX is now 3.6pc in the red, while the CAC in Paris and the Spanish IBEX are down 3.2pc and 2.9pc respectively.
09:09
Sterling sinks to five-and-a-half year low
The pound fell to its weakest level since June 2010 just after 9am this morning.
Sterling dropped 0.4pc to $1.4561 and 0.8pc to 74.26 pence per euro.
GBP six-year graph
09:00
UK miners slump to lowest level in 12 years, as copper nears seven-year lows
The FTSE 350 mining index tumbled to its lowest level since June 2004.
Anglo American is the biggest faller this morning down 9.7pc to 244.3p. Glencore is not far behind - falling 6.5pc to 80p. Antofagasta and BHP Billition have slipped by around 6pc in early trade.
The move downwards comes as copper plunged to near seven-year lows this morning amid chaos in Chinese stock markets. The market mayhem has fuelled concerns demand from the world's biggest metals consumer is waning. Three-month copper on the London Metal Exchange fell by 2.5pcto $4,503 a tonne.
08:31
FTSE dips below 6,000 mark - £36bn wiped off index in 30 minutes
The FTSE 100 has fallen below 6,000 for the first time since mid-December. In the first half hour of trading, the blue chip index slumped 141.7 points, or 2.34pc, to 5,930.33.
In a mere 30 minutes more than £36bn has been wiped off the value of Britain's leading companies.
With market mayhem in China, sliding oil prices and geopolitical tensions at the fore, Andy McLevey, of Interactive Investor, said: "Investors are scurrying to the sidelines and even these current levels may not be enough to tempt many back short term as the uncertainty continues."
08:14
European markets open down
Is it Monday all over again?
European markets are in the red again after China's suspension overnight.
The FTSE 100 sank 1.8pc on opening.
The German DAX was down 3pc, the French CAC by similar, and the Spanish IBEX by 2.7pc.
08:09
Oil drops to $32 a barrel
The turmoil in China is starting to be felt across the board.
The price of Brent crude oil - the European benchmark for oil - dropped to $32.50 this morning, a 12-year low.
West Texas Intermediate, the US benchmark, fell as much as $1.87 to $32.10 a barrel, the lowest intraday level since December 2003.
Oil watchers were wondering whether it had any further to fall in 2016 after a dire 2015. Today's drop will be terrible news for oil & gas firms.
How low can oil go?
07:40
'The system doesn't work'
Some early thoughts from Mark Dampier, head of investment research at financial services firm Hargreaves Lansdown:
"Clearly the circuit breaker is having the opposite affect to what is intended and is making things worse. It also stops the market having any chance of bouncing. Had it been introduced during 2015, it would have been triggered 20 times. The system doesn’t work and until it is withdrawn or modified we can expect to see further use and perhaps shorter trading periods than we saw last night.
"The interference by the authorities is simply delaying the inevitable. The market needs to find its own level so we will see more volatility in global markets until it does.
"Long-term investors should sit tight. The Chinese market falls are also hurting global markets which look painful in the short term but are beginning to present buying opportunities."
A stock ticker (in green - a negative colour in China) shows this morning's market movements
07:30
How does China's 'circuit breaker' work?
For the second time this week, after Monday's dramatic start to the new year, China's "circuit breaker" mechanism kicked in to suspend stock trading.
The circuit breaker institutes a 15-minute pause in trading if a market index, the CSI 300, falls 5pc within 30 minutes.
But today's decline was so fast that before that could take effect, it hit the 7pc limit that ends trading for the day.
In fact, trading this morning was suspended after just 870 seconds - or 15 minutes, making it reportedly one of the shortest trading days in history.
The circuit breaker - which was only introduced this week - was designed to bring stability to the sometimes volatile Chinese stock market. Safe to say it's not off to a great start.
07.20
Why has the Chinese stock market been suspended again?
The latest fall in China's stock markets is connected to the rapid devaluation of China's currency, the yuan, or renminbi.
The People's Bank of China (PBOC) again surprised markets earlier today by setting the official midpoint rate on the yuan at 6.5646 per dollar, the lowest since March 2011.
That was 0.5pc weaker than the day before and the biggest daily drop since last August, when an abrupt near 2pc devaluation of the currency also roiled markets.
While it's not always easy to pinpoint the motives of the Chinese authorities, most market watchers believe the move to further devalue the yuan is a bid to give China's exports a boost.
A cheaper yuan would, in turn, make Chinese exports cheaper, and give the economy a lift. China's economic growth has been slowing for some time; many experts believe growth this year will be below the government's official stated target of 7pc a year.
As Reuters notes, a sustained depreciation in the yuan puts pressure on other Asian countries to devalue their currencies to stay competitive with China.
07:10
Chinese stock markets suspended
Chinese stock trading was suspended on Thursday after "circuit breakers" kicked in following a steep plunge, in the latest spasm of investor panic on the country's volatile markets.
Trading on the Shanghai and Shenzhen stock exchanges was frozen for the day after shares tumbled more than 7pc.
The CSI300, an index comprising the biggest stocks in China, fell 6.93pc. The Shanghai Composite Index was down 7pc, and Shenzhen 8.24pc.
The emergency measures, which took effect on January 1, also kicked in on Monday to halt stock trading.
Beijing has been trying to restore investor confidence after markets plunged in June following huge gains in the preceding year. The market meltdown has prompted a panicked, multibillion-dollar government intervention.
All eyes are now on European markets to see if this latest trading halt knocks shares here.
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