At the open: FTSE 100 falls as gold and oil lose their shine
There was no "dead cat bounce" on European markets this morning as they continued to crash, hitting three-week lows on the back of a smorgasbord of mediocre economic data.
The FTSE 100 sunk 0.6 per cent in the first few hours of the day to stand at 6,150.48. The German Dax is now more than 100 points off the 10,000 mark – once thought to be a natural floor – it splattered through yesterday, down another 0.4 per cent at 9,891.81.
Read more: European Commission cuts its growth forecasts
France suffered a similar fate – the Cac was off 0.3 per cent at 4,357.63.
BHP Billiton was the biggest faller on the FTSE 100 – down 7.1 per cent to 813p – after it got itself embroiled in some legal trouble in Brazil. Other miners also continued to drop following yesterday's losses.
Europe picked off where the States and Asia left off yesterday. Despite an extra day off across many major markets, traders did not come back to desks with a spring in their step.
Read more: UK construction grows at slowest pace in three years
Asian markets chalked up their sixth consecutive day of losses overnight and the Dow Jones also dipped even further off its own psychological market of 18,000. It ended yesterday down 0.8 per cent at 17,750.91.
With oil prices unchanged at $45 a barrel – but down on the week – and even safe-haven gold falling back from last week's highs, it was hard to figure out where exactly the money was moving to.
The currency markets provided the best clues, although probably had textbook economists scratching their heads.
The pound and the dollar – the two currencies with (comparatively) hawkish central banks behind them – weakened, while the yen and the euro continued to appreciate, despite the European Central Bank and Bank of Japan's easing policies.