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 Stock markets across the world have fallen sharply as fears of a Chinese economic slowdown continue to haunt investors. 
 
 London's FTSE 100 index closed down 4.6% at 5,898.87, with major markets in France and Germany down by 5.5% and 4.96% respectively. 
 
 In total, £73.75bn was wiped off the FTSE 100 as a result of Monday's falls. 
 
 In volatile trading, Wall Street's Dow Jones fell 6%, then almost recovered its losses before closing 3.6% lower. 
 
 At one point it fell below 16,000 for the first time since February 2014, while the technology-heavy Nasdaq index closed 3.8% lower, recovering from an earlier plunge of 8%. 
 
 The S&P 500 ended trading 3.9% lower and 11% below its May record, putting it officially in "correction" territory - a fall of 10% or more from its peak. 
 
 Shares in Asia were hit overnight, with the Shanghai Composite in China closing down 8.5%, its worst close since 2007. 
 
 At its lowest point in the day, the FTSE 100 had lost as much as 6%, wiping some £100bn off its value. 
 
 Global investors are worried about growth in the world's second largest economy. 
 
 Media playback is unsupported on your device Media caption Stephen Guilfoyle, New York Stock Exchange floor trader: Markets "bordering on edge of panic" 
 
 Analysis: Michelle Fleury, New York business correspondent 
 
 The floor was buzzing long before the US market open. All the traders knew this wouldn't be a typical sleepy August Monday. 
 
 Minutes after the opening bell, the Dow fell a staggering 1089 points, its biggest ever points drop. One floor trader complained his shirt was soaked with sweat after the early plunge in stocks. 
 
 Another, Stephen Guilfoyle from Deep Value, told me the US markets were 'bordering on the edge of panic but not quite there yet.' He can remember the crash of 1987 and said this didn't feel as bad. 
 
 Indeed by late morning, US markets were showing some resilience, leading Mark Otto of J Streicher to conclude that Monday's big market moves in the US were similar to the 'flash crash' of 2010, when billions of dollars were wiped off some of the world's biggest companies in a matter of minutes, only to recover almost as quickly. 
 
 Karishma Vaswani: China counts cost of Black Monday 
 
 Robert Peston: Will China’s slowdown make us poorer? 
 
 Duncan Weldon: China share falls - why it's not 2008 
 
 Stock market woes 10th session in a row that the FTSE has fallen 8.5% fall in Chinese stocks - biggest one day loss since 2007 
 
 $42.51 Brent crude fell to lowest level since March, 2009 
 
 -2% At one point, the pound saw the biggest fall against the euro in six years 
 
 China's central bank devalued the country's currency, the yuan, two weeks ago, raising fresh concerns that a slowdown in the country's economy was worse than originally feared. 
 
 Currencies and commodities are also falling sharply, because those markets rely heavily on strong demand from China. 
 
 Without strong reassurances from officials in China, investors have not had much reason to buy. 
 
 Analysis: Karishma Vaswani, Asia business correspondent 
 
 Beijing's official mouthpiece has called it China's "Black Monday". 
 
 The Shanghai Composite tumbled by 8.5%, its biggest fall since 2007. That plunge wiped out this year's gains as investors refused to buy into the Chinese government's repeated attempts to shore up confidence. 
 
 Everyone wants to know what the Chinese government is going to do next to shore up shares and confidence in the economy. 
 
 The smart money is on the central bank reducing interest rates and injecting a semblance of consumer confidence into the markets. 
 
 That is what many had hoped would happen over the weekend. 
 
 But at each point in what appears to be an ever-deepening Chinese slowdown, the government has seemed slow to react. 
 
 Media playback is unsupported on your device Media caption The BBC's Celia Hatton said Chinese investors went on microblogging website Weibo to vent their frustrations 
 
 Selling that started earlier this summer has gained momentum, experts say. 
 
 "It does appear that we're moving very quickly to the downside," said David Madden, market analyst at IG. 
 
 Widespread investor fears about the sharp drops in Asia were exacerbated by thin trading volumes in Europe, with many investors away on holiday. 
 
 "I think more uncertainty lies ahead," Mr Madden said. 
 
 Investors might have to wait for several weeks for bargain hunters to come into the market to lift stocks. 
 
 Image copyright Getty Images Image caption India did not escape the global sell-off with the main index falling nearly 6% 
 
 Beijing's latest intervention, to allow its main state pension fund to invest in the stock market, failed to calm traders' fears, both in China and abroad. 
 
 Over the past week, the Shanghai index fell 12%, adding up to a 30% drop since the middle of June. 
 
 The sharp fall sparked a global sell-off, with the Dow Jones in the US losing 6%, while the FTSE 100 posted its biggest weekly loss this year, of 5%. 
 
 Earlier this month, the Chinese central bank devalued the yuan in an attempt to boost exports. 
 
 European investors worry that a cheaper Chinese currency will make European exports less competitive. 
 
 In other developments: ||||| Stocks plummeted on global-growth fears for a second straight day Friday in a plunge that dragged the Dow industrials into correction territory. 
 
 The global market rout pummeled stocks and commodities as fresh evidence emerged that China’s economy is slowing, spooking investors. 
 
 The Dow industrials lost 530.94 points, or 3.1%, to close at 16459.75, putting it in correction territory, as defined by a 10% decline from a recent high. The S&P 500 dropped 64.84 points, or 3.2%, to close at 1970.89. The Nasdaq Composite fell 3.5%, or 171.45 points, to 4706.04. 
 
 The Dow’s more than 1,000-point drop this week was the largest weekly drop since the week ended Oct. 10, 2008. 
 
 Related Video U.S. stocks tumbled on Friday as the Dow industrials plunged 531 points, dragging the index into correction territory. WSJ's Geoff Rogow and Barron's Jack Hough discuss what's spooking investors and the outlook for global markets in the week ahead. Photo: Getty 
 
 U.S. oil prices also briefly dropped below $40 a barrel on Friday, a level not seen since the financial crisis. 
 
 Signs of a sharp slowdown in the world’s second-largest economy have unnerved investors since Beijing surprised markets last week by devaluing its currency. Shares in the U.S., Asia and Europe have tumbled, along with commodity prices as investors fretted about waning Chinese demand just as supplies are surging. 
 
 The market turmoil has some traders exercising caution. 
 
 “You have a situation that’s tough to play,” said Christopher Cady, a New York-based trader. He said he closed out bets toward the end of the week that U.S. stocks would fall. “Nimble…is the new black.” 
 
 The pan-European Stoxx Europe 600 ended the session 3.3% lower, closing out its biggest week of losses since August 2011. The index has now lost nearly 13% since its April peak, entering correction territory. 
 
 Earlier, the Shanghai Composite Index tumbled 4.3%, hitting its lowest level since March, despite Beijing’s efforts to prop up the market in recent weeks. In Japan, the Nikkei fell 3% to a six-week low. 
 
 An early gauge of China’s factory activity fell to a six-and-a-half year low in August, heaping further pressure on stocks and commodities after Thursday’s global selloff. 
 
 “Now we’ve had some harder evidence that China is slowing relatively fast, people have chosen to get out,” said Kiran Ganesh, a multiasset strategist at UBS Wealth Management, which oversees around $2 trillion of assets. 
 
 A surge in investor demand for assets considered safest during times of market stress sent the yield on 10-year U.S. Treasury bonds to 2.042%, its lowest level since April. Yields fall as bond prices rise. 
 
 The dollar fell by around 1% against the euro and Japan’s yen. The euro and yen have recently tended to rise during times of market stress. 
 
 Some investors and analysts say they think the tumult in the markets could complicate the Federal Reserve’s plans to raise interest rates. 
 
 “The Chinese have created an air of fragility around the globe. Markets will now surely have to firm up considerably for the Fed to pull the trigger next month,” said Deutsche Bank analyst Jim Reid. 
 
 Ultralow interest rates have fueled a big rally in stock markets since the financial crisis. On Wednesday, minutes of the Fed’s latest policy meeting showed officials were divided over when to raise rates, with some citing concerns over China’s economy as a reason to hold back. 
 
 But a delay in lifting rates may bring little comfort to investors if slowing global growth is underpinning the Fed’s caution. 
 
 Paul O’Connor, a senior fund manager at Henderson Global Investors, which manages £82 billion ($129 billion) in assets, said he has been selling stocks and buying bonds in recent months, fearing further spillover from the recent Chinese selloff. 
 
 “Is there a buying opportunity in stuff that has got beaten up, or will it start to erode confidence in developed market assets? We’re in the latter camp,” he said. 
 
 Global equities suffered $8.3 billion of outflows in the week ended Thursday, representing the worst week in almost four months, according to data from Bank of America Merrill Lynch published Friday. Losses were particularly heavy in the emerging markets and the U.S. 
 
 The recent rout in commodity markets continued Friday as fears over waning Chinese demand intensified. 
 
 Oil prices extended their recent declines. Brent crude oil, the global benchmark, fell 2.5% to around $45.48 a barrel, its lowest level since January. The U.S. benchmark settled down 2.1% at $40.45 a barrel. 
 
 Industrial metals prices also fell as the Chinese data reignited worries about the future pace of demand from the world’s top consumer. 
 
 “Commodity markets are telling us this is quite serious,” said Neil Dwane, head of European equities at Allianz Global Investors, which oversees EUR412 billion ($463 billion) of assets. 
 
 --Chiara Albanese, Christopher Whittall, Josie Cox and Ese Erheriene contributed to this article. 
 
 Write to Leslie Josephs at leslie.josephs@wsj.com and Tommy Stubbington at tommy.stubbington@wsj.com
– It's a bleak start to the new year on Wall Street Monday morning: The Dow fell more than 360 points at the open after China's stock market suffered a huge plunge of its own. Chinese stocks fell 7%, spooking US investors worried about a global slowdown, reports the Wall Street Journal. The Nasdaq and S&P 500 were down similar percentages. "The rout in China is placing pressure on markets more globally, although it remains to be seen how long the hit to market sentiment will persist," says a note at Investec, per MarketWatch.