Tuesday, August 25, 2015

Britain's stock market reacts to China's problems

£74 billion was wiped off the market value of Britain's 100 largest companies yesterday as shares in London fell in response to a similar fall in China.

Shares in Shanghai closed down 8.5 per cent overnight as investors grow increasingly concerned about the world’s second largest economy.

The knock-on effect in London saw share prices fall 4.6% to the lowest level since 2009.

Chancellor George Osborne said the plunge was a timely reminder that Britain is “not immune” from what happens in the world and that this illustrates why we need to get our house in order.

“You don’t know where the next crisis is coming from, you don’t know where the next shock is going to come from in the world," he said.

“Britain is a very open economy, we’re probably the most open of the world’s largest economies. And so we are affected by what happens; whether it’s problems in the eurozone, problems in Asian financial markets.”

No comments: