FTSE Faltering After Latest China Turmoil

The FTSE 100 Index has endured another faltering session after an intervention by China in its volatile stock market failed to make a decisive impact.

China's Shanghai Composite index ended 0.3% lower overnight after a choppy session despite Beijing pouring nearly $20bn (£14bn) into markets following a 7% slump in the previous session.

The nosedive had led the FTSE to suffer a New Year hangover when it fell by 2.4% on Monday - wiping £38bn off the combined value of its constituent companies - in a miserable start to trading for 2016.

China's latest intervention saw the London market staunch the declines as it boosted FTSE-listed commodities stocks such as Fresnillo (Other OTC: FNLPF - news) and Glencore (Xetra: A1JAGV - news) .

But European markets were heading for a second session in the red.

Jasper Lawler, market analyst at CMC Markets, said: "UK and European stock markets stuttered on Tuesday following a volatile Asian session that saw Chinese stocks end lower despite state intervention."

It (Other OTC: ITGL - news) comes after China had halted trading on its Shanghai and Shenzhen indices amid the stock market falls.

That was the first time a new "circuit breaker" system - designed to curb volatility in Chinese stock markets - has been triggered, with trading ending 90 minutes earlier than the usual close.

It is the latest episode of market volatility to shake the world’s second biggest economy - whose growth slowdown is sending jitters around the world.