Markets in freefall after US data shock

US manufacturing data has sent markets plunging again, with the S&P 500 down 4.5% and the UK and Europe also tumbling.

The S&P 500 was down 4.3% at 1,120 shortly after 3pm BST, with the FTSE 100 extending earlier losses to stand down 4.7% at 5,080. Losses accelerated after a manufacturing index from the Philadelphia Federal Reserve fell to -30.7 in August, the lowest level since March 2009. Economists had expected the index to remain close to July's figure of 3.2. The Dow Jones industrial average lost over 500 points, falling 4.4% to 10,908, while the Nasdaq was down 4.7% at 2,394. In France, the CAC 40 was down 5.6% at 3,071 with Germany's Dax standing some 6.3% lower at 5,574. Investors res...