FTSE slumps 1.5% on China worries

The FTSE 100 has seen a significant drop down to 5,889.62, falling 1.46% as strong growth figures from China prompt monetary tightening concerns.

China has posted economic growth of 10.3% for last year which surpassed expectations, despite a final strong quarter based on robust industrial production and retail sales. This growth rate, which has seen China overtake Japan as the world's second biggest economy behind the US, is driving concerns of monetary tightening by China in order to dampen inflation. Nonetheless, inflation in China had actually cooled to 4.6% in December, after a 28-month high the previous month. Global markets have been affected with Germany's Dax down 0.75% to 7029.59, while France's Cac 40 fell 0.43% to...