FTSE 100 in new dive as George Soros labels China's plunge a ‘crisis’
London shares earlier crashed more than 170 points after stock trading was halted in China for the second time this week and veteran investor George Soros described it as a crisis.
The pound hit its lowest point against the dollar since June 2010 after Chancellor George Osborne said the UK faced a “dangerous cocktail” of global threats to economic growth.
Brent crude shed 97 cents to $33.27 a barrel, a 12-year low.
The FTSE 100 index retreated 2.6%, meaning that it has fallen more in the first four days of 2016 than it did in the whole of 2015.
Once again, the rout began in China, where share trading lasted just 14 minutes before being halted by circuit-breakers.
The broad CSI 300 index fell 5% in the first 13 minutes of trading, triggering a 15-minute suspension. Immediately trading resumed, the index was down by 7%, prompting a halt for the rest of the day.
Analysts said that retail investors were queuing up to sell shares every time the circuit-breakers were lifted.
Soros said: “China has a major adjustment problem. I would say it amounts to a crisis. When I look at the financial markets, there is a serious challenge which reminds me of the crisis we had in 2008.”
In London, the Footsie was down 171.63 points at 5901.71. That is a 5.6% fall this year against the 4.9% it lost in 2015.
European markets were all down by at least 3%.
