Shares slump on China’s fall in output

Fri close: London shares plummeted on the back of fears over the health of the Chinese economy.

China’s factories shrunk at their fastest pace for almost six and a half years leading to sharp falls in Asia. The FTSE 100 fell 99.7 points to 6,268.17 points.

Analysts say there is not much data to give the markets any support.

News of fresh elections in Greece also weighed on sentiment in Europe. France’s CAC 40 index and Germany’s DAX were down 0.6%.

At home, the Bank of England is looking for an improvement in wages before raising interest rates and they are being contained at 2% according to new data.

Oil prices were at their lowest levels since January.

GlaxoSmithKline slumped following reports Novartis has agreed to buy all remaining rights to Ofatumumab from the British group for up to $1bn.

Barclays slid as a US judge said shareholders who claimed the bank inflated its stock price by manipulating Libor may pursue their lawsuit as a class action.

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