UPDATE: Global markets slide further on US services data

Global markets are posting heavy losses as further weak economic data from the US deepens fears the country will fall into recession.

The pace of growth in the US service industry has hit a year and a half low, setting the Dow Jones on course to extend its longest losing streak since October 2008. The FTSE 100 has slumped 2.39% or 136 points to 5,581 at 4.15am stoked by debt worries on both sides of the Atlantic. UK 10-year gilt yields have hit a fresh low, down by two basis points at 2.75%, as investors flocked to safety in government debt. The German Dax is down 2.8% or 190 points to 6,606, while the French Cac has fallen 1.6% or 56 points to 3,466. Fears persis the US debt ceiling deal will not stave off a ...