Global markets plunge on weak China factory data
Sept 02, 2015 (LBO) – Data from China suggesting a contraction in factory activity threw global markets into a selling frenzy Tuesday with the U.S. S&P 500 plunging 2.9 percent, the London FTSE falling 3.03 percent after Shanghai closed 1.2 percent earlier in the day.
China’s manufacturing sector shrank at its fastest pace in three years. The manufacturing purchasing managers’ index (PMI) dropped to 49.7 from 50 in July, with a figure below 50 indicating a contraction.
A slowdown in the world’s second-largest economy has spooked markets with the possibility that companies selling in China will experience slower earnings growth.
(updates to follow)