Noon market report

Jul 1 2010 By Holly Williams and Graeme Evans

THE FTSE 100 Index started the third quarter with further losses today as renewed fears over the global economy sent the top tier slumping to a near-10 month low.

Signs of slowing growth in the Chinese economy and further concerns over Europe’s sovereign debt crisis hit stocks hard, with banks and miners worse off.

The Footsie reached its lowest point since early September, down 44.6 points to 4872.3, having yesterday finished the second quarter down more than 13%.

Ratings agency Moody’s decision to put Spain on review of a possible downgrade prompted the latest sell-off, while data also showed China’s manufacturing slowed in June.

Japan’s Nikkei index slumped by more than 2% overnight while the Dow Jones Industrial Average on Wall Street ended 1% lower in the previous session and was on course for a lower opening again today, according to futures trading.

Investors waited cautiously for key US manufacturing data following the disappointing Chinese figures.

A closely watched gauge of UK manufacturing activity also sparked cause for concern that the bounce back on these shores was faltering due to a eurozone blow to exports.