The FTSE 100 had shed £80 billion in value by Monday afternoon trading after severe losses in Chinese markets prompted a global selloff.
Monday’s bloodbath marked the tenth day of consecutive losses on the FTSE 100. The index has lost around £218 billion in value in that time.
Many expected the Chinese government to take measures such as cutting interest rates or injecting liquidity to stop further losses after the Shanghai Composite Index fell nearly 12 per cent last week. No action prompted further losses of 9 per cent on Monday.
Since August 11, $5 trillion has been been wiped off global markets after China unexpectedly devalued the yuan.
The Dow Jones also plummeted more than 1000 points on opening Monday, before rebounding slightly. The S&P 500, another US stock market index, dropped 99 points, or 5 per cent.
While plunging stock indices were attributed to lack of action in Beijing, Monday’s selloff follows months of poor data. Last week, activity in Chinese factories was shown to have dropped sharply.
Read more:
China Black Monday sparks market plunge of 1,000 points
Declining commodity prices continue to weigh on some sectors and companies such as oil giants Glencore, Shell and Rio Tinto, which are all listed on the FTSE 100.
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