FREE now SUBSCRIBE Invalid email Make the most of your money by signing up to our newsletter fornow We will use your email address only for sending you newsletters. Please see our Privacy Notice for details of your data protection rights.

Investors have been rattled about rapidly rising interest rates and an expected slowdown in global economic growth. While in Europe, the market has also felt the ripple effects of the ongoing fallout between Italy and European Union chiefs over Rome’s deficit budget proposal. The FTSE 100 opened down 1.6 percent, while the pan-European Euro Stoxx 600 Index had dropped by 1.2 percent in early deals. At 12:21pm, the FTSE 100 was trading at 7,030.90, according to Bloomberg, before later clawing back gains to reach 7,055.15 at 15:09 GMT.

In Italy, the FTSE MIB had tumbled by 1.5 percent this morning, before later clawing back some gains. Markets also sunk this morning in Asia, with Japan's benchmark Nikkei 225 losing 3.9 per cent, its biggest daily drop since March. China witnessed its lowest stock market level in almost four years, while the Shanghai Composite ended the day down 5.2 percent. The turbulent start for investors comes after the US stock market tumbled, with the Dow Jones Industrial Average sinking last night by more than 800 points. As of 16:08 GMT, the Dow was down some 295 points, having initially clawed back gains of 42 points earlier this afternoon.

Trading information at the New York Stock Exchange in New York last night

A sea of red across global stock markets on Thursday following Wall Street's 3.2% tumble on Wednesday. pic.twitter.com/3fXLgViAHg — Jamie McGeever (@ReutersJamie) October 11, 2018

Italy's FTSE MIB had tumbled by around 1.5 percent

The FTSE 100 opened down 1.6 percent

The S&P 500 fell to a fifth-day straight loss yesterday, the longest slump since President Donald Trump was elected, as Wall Street endured its sharpest one-day fall in months. The crumbling of global markets comes following concerns from investors surrounding global economic growth and rising interest rates. The Federal Reserve is raising interest rates which makes it more expensive for companies to borrow and harms share prices. The rout suggests businesses are not able to sustain the runaway growth that is marked 2018 so far. Investors are nervous a trade war would slash profits. President Trump described the Fed as having “gone crazy” after walking off Air Force One in Erie, Pennsylvania for a rally. He said: ”I think the Fed is making a mistake. They are so tight. I think the Fed has gone crazy. "Actually, it's a correction that we've been waiting for for a long time, but I really disagree with what the Fed is doing.”

Biggest daily fall in Chinese stocks since the early days of 2016. pic.twitter.com/91hnH5Bovn — Mike Bird (@Birdyword) October 11, 2018