Summary

  • Wall Street recovery stalls

  • FTSE 100 closes down more than 4%

  • Shanghai sheds 8.5%, Hong Kong down 5.2%

  • London mining and oil stocks hammered

Live Reporting

Tom Espiner

  1. 'Sickness becomes contagious'

    Peter Thal Larsen of Reuters Breakingviews comments: 

    China's stock market sickness is becoming contagious. Shockwaves from the latest selloffs in Shanghai and Shenzhen have rippled across currencies, commodities and Asian bourses. Investors may be losing confidence in China's ability to micro-manage the financial sector - and steer a slowing economy. The latest stock market decline only underscores the futility of [the government's] efforts to prop up share prices at higher levels in July. If officials have now stopped trying to use government money to manipulate the market, the sell-off may actually be positive. Even so, blind faith in China's ability to navigate its many economic challenges has gone for good.

  2. Those market falls in full:

    - Shanghai down 9%- Hong Kong and Tokyo both close down 4.6%- Sydney closes down 4.1%- Taipei down 4.8%- Seoul down 3%  

  3. FTSE forecast

    The chief executive of financial management firm Nutmeg tweets:

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  4. 'Messy' markets

    Newsnight's economics corrrespondent tweets:

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