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Leading shares plummet on China woes

Tue close: Leading shares suffered another pounding after a slump in manufacturing figures in China. The FTSE 100 fell 3%,  its worst one-day fall in over a week.

All but one stock in the top index closed in negative territory as traders take little heed of intervention by policymakers to halt the slide in world markets.

Miners Glencore and Anglo American fell 9.98% and 7.64% respectively.

Mark Ward, head of execution trading at London-based Sanlam Securities, said: “People are getting back from holidays and trying to make sense of what is going on.”

Markit’s PMI on manufacturing fell from 51.9 to 51.5 in August, “well below” its average for the past two-and-a-half years. Howard Archer from IHS Global Insight, said: “The survey indicates that UK manufacturers are continuing to find life very challenging as they are being held back, particularly by weak foreign orders.”

On the upside, UK mortgage approvals rose in July, reaching their highest level since February. According to the Bank of England, mortgage approvals for house purchases rose from 67,069 in June to 68,764 in July, a figure that exceeded analysts’ expectations, while net mortgage lending jumped by 2.709bn pounds, the biggest increase since July 2008.

The FTSE 100 closed down 189.4 points or 3.13% at 6,058.54.

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