European shares slump as Chinese losses rattle markets

Stock markets in London, Paris and Frankfurt have opened sharply lower as fears of a Chinese economic slowdown continue to haunt investors.

London’s FTSE 100 index was down by 2.5% in early trade, while major markets in France and Germany also opened down by more than 3%.

Shares in Asia were hit overnight, with the Shanghai Composite in China closing down 8.5%, its worst close since 2007.

The Chinese authorities tried in vain to reassure investors.

In addition, oil prices are slumping to six year lows, as traders worry about slowing growth in the worth’s second largest economy.