Stock markets across the world have fallen sharply as fears of a Chinese economic slowdown continue to haunt investors.

London’s FTSE 100 index closed down 4.6% at 5,898.87, with major markets in France and Germany down by 5.5% and 4.96% respectively.

In total, £73.75bn was wiped off the FTSE 100 as a result of Monday’s falls.

Wall Street’s Dow Jones initially fell 6%, but recovered to trade just 0.8% lower.

At one point it fell below 16,000 for the first time since February 2014, while the technology-heavy Nasdaq index was 1% lower, recovering from an earlier plunge of 8%.

Shares in Asia were hit overnight, with the Shanghai Composite in China closing down 8.5%, its worst close since 2007.

At its lowest point in the day, the FTSE 100 had lost as much as 6%, wiping some £100bn off its value.

Global investors are worried about growth in the world’s second largest economy.