A 6.7% tumble in the Chinese stock market dragged global stocks down this morning.
Chinese share trading is largely cut off from global markets but the big drop in Shanghai still had a psychological knock-on.
Shanghai stocks fell 6.7% and the index dropped below the 125-day moving average, which many domestic investors believe is the dividing line between bear and bull markets.
Foreign investment on the Chinese stock market is limited, leaving trading largely to domestic players. Nevertheless, global investors decided to play safe after strong gains in recent months.
Overnight, the Shanghai Composite Index closed 193 points lower - a fall of 6.7% - at 2,668.
