The FTSE 100 has hit its lowest level of 2015, after weak Chinese factory data spooked investors worldwideFootsie 100’s slide continuesShanghai stock market tumbles 4%Greek left-wing MPs form new partyIntroduction: Global selloff intensifiesWeak Chinese factory data spooks traders 10.21am BST Slovakia’s finance minister has accused Alexis Tsipras of acting cynically by seeking snap elections last night, on the day Greece received its first tranche of bailout money:We respect Mr. Tsipras decision, but I can't help feeling it's a bit cynical timing to do it immediately after the 1st disbursement #GreeceNevertheless, we have to believe that any Greek govt to come will implement what was agreed. It's the most important thing #Greece #eurozone 9.41am BST The sharp selloff in Asia has pushed Hong Kong’s index into bear market territory.The Hang Seng index fell 1.5% today, the sixth daily fall in a row, to close at its lowest level since May 2014.“Uncertainty about China growth is now the main swing factor in markets. Today’s data reinforced the doubts about global growth.” 9.19am BST Alexis Tsipras’s resignation last night has hit the Greek stock market this morning.The index of 20 largest shares in Athens fell 2% in early trading, with bank shares down around 3%. 9.15am BST Here’s a list of the left-wing Greek MPs who have just broken away from Syriza to form their own party. 25 ex-Syriza Popular Unity MPs. V/@protothema. Will add them to my Syriza rebel MP spreadsheet http://t.co/yBtnCByJZw pic.twitter.com/M2rY1tus0xIt is the font of choice for all serious political players. Nothing says "I mean business" like Comic Sans #Greece https://t.co/GlGAUBNPv3 9.05am BST The head of Greece’s largest opposition party, New Democracy, has just been handed the three-day “mandate” to form a new government:ND pres Meimarakis officially receives mandate from President Pavlopoulos to form government https://t.co/nai4iFFSP4 #Greece 8.46am BST Breaking away from the markets... there are important political developments in Greece.Twenty five far-left members of the Syriza party have just broken away to form their own party. New party of SYRIZA rebels (Popular Unity) will be led by ex-Energy Minister Lafazanis. Doesn't incl parl't speaker Konstantopoulou #GreeceIt's official: Left Platform split from Syriza, form own parliamentary group and party named Popular Unity. End of a 20+ year era. | #Greece 8.40am BST Chinese authorities appear to have intervened to prop up the Shanghai stock market, in the last few minutes of trading:Victory for Beijing! Shanghai Comp's "floor" defended in final minutes, writes @patrickmcgee_ http://t.co/Z6t7HKbUl8 pic.twitter.com/cssnSxAXsM 8.36am BST China’s stock market has suffered another bad day.The Shanghai Composite index just closed, down over 4%, in a nervy selloff after factory activity fell at the fastest rare since the crisis began.#China rout deepens: Shanghai Comp closes 4.2% lower at 3507.74 after horrible econ data. PMI at lowest since GFC. pic.twitter.com/pV1B2ycQ8L 8.33am BST Selling in May and going away would have been an excellent trading strategy this year.Britain’s FTSE 100 has fallen more than 11% since hitting its record high in April, to hit its lowest level of 2015 this morning: 8.22am BST The latest political turbulence in Greece is also hitting stock markets, says Augustin Eden of Accendo Markets:He blames:....further deterioration of the Chinese growth outlook (dire manufacturing data overnight) and political turmoil in Greece that continues to hamper investor sentiment.Greek PM Tsipras officially resigned last night, with snap elections slated for 20 Sept and endorsed by the EU. 8.21am BST Technology firm ARM Holdings is the biggest faller on the FTSE 100 index this morning.ARM’s semiconductors are used in billions of mobile devices, so it’s vulnerable to a slowdown in emerging markets such as China. 8.10am BST Markets sharply down at the opening - FTSE -68 points, DAX -185, CAC -61 - resources, banks and oils still head south - down k1.5-2% 8.05am BST And we’re off!The FTSE 100 has shed 1.3% at the start of trading in the City. 7.59am BST A weakening global economy means less demand for energy. And that’s why the price of oil has fallen by around 1% this morning.Brent crude, sourced from the North Sea, has dropped to $46 per barrel, the lowest since January.Oil is on course for the longest weekly losing streak since 1986 http://t.co/C41DxS2NIS pic.twitter.com/cgLfY9jDmR 7.55am BST It’s nearly time for Europe’s stock markets to open. Jan von Gerich, chief strategist at Norwegian financial group Nordea, sets the scene:Equity markets plunged globally. In the US, S&P 500 tumbled by 2.11%, leaving the index at its lowest since February. Prices have continued to drop overnight in Asia, with e.g. China down by another 3%, and the weakness will extend into European markets this morning. Core bonds have rallied, oil prices remain in free fall, while the EUR/USD is heading higher. The pressure on emerging market currencies continues.Equity market #plunge continues globally. Forget about #Fed hikes, be genuinely worried about #China and other emerging markets. 7.47am BST Two factors are driving today’s sell-off; China’s economic slowdown, and confusion over when America’s central bank will raise interest rates.Until recently, many economists had been pricing in a US rate hike next month. But some investors now believe that China’s woes make that much less likely - creating fresh uncertainty. And markets don’t like that at all.Global markets are in panic mode as the full scale of China’s slowdown becomes clearer and the market pricing for a Fed September rate hike is unwound. Asian markets are a sea of red. Oil has fallen a further 1% in Asia trading today, and the word on everyone’s lips is deflation – poison for equity markets. The phenomenal six-year bull market may finally meet its match in China-induced global deflation. The excess supply of commodities and the potential for further devaluations in the Chinese yuan not only make a Fed rate hike in September unlikely, but increasingly even put a December rate hike at risk. 7.35am BST Asian stock markets went into ‘panic mode’ today, after China’s factory sector reported a sharp slowdown, writes my colleague Martin Farrer in Australia:China’s factory sector shrank at its fastest pace in more than six years in August as domestic and export demand dwindled, a private survey showed, adding to worries that the world’s second-largest economy may be slowing sharply and sending financial markets into a tailspin.China’s surprise devaluation of the yuan and heavy selling in its stock markets in recent weeks have sparked fears that it could be at risk of a hard landing which would hammer world growth. Related: Global stocks in 'panic mode' as Chinese factory slump drags on markets 7.32am BST Good morning.Our European opening calls: $FTSE 6238 down 130 $DAX 10107 down 325 $CAC 4666 down 117 $IBEX 10293 down 294 $MIB 21798 down 581“Markets are pricing in the worst right now.”Friday's @CityAM front page as Tsipras resigns and triggers election. pic.twitter.com/fr9Sa6Ki1h Continue reading...
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