The FTSE 100 index fell after weak economic data from China raised concerns about the weak recovery of the global economy.
The UK’s blue-chip index – which is heavily influenced by international trade – fell as much as 0.8% in early trading, while the mid-cap FTSE 250 index fell 0.6%.
This follows declines in Asian markets and the fifth straight session of losses for the European STOXX 600 index, which fell 0.6% after weak Chinese data.
A survey of China’s services sector in August showed that output expanded at the slowest rate since Covid restrictions were lifted, as the economy was hit by a weaker outlook and continued turmoil in the property market.
The Caixin services PMI fell to 51.8 last month from 54.1 in July, its weakest pace since December.
Meanwhile, China’s efforts to become the world’s largest economy have been threatened after the damage done by its Covid eradication policies.
China’s GDP will not surpass that of the United States until the mid-2040s, and even then it may be “only by a small margin” before it “declines,” according to a study by Bloomberg Economics.
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