World shares have sagged again as investors fear fresh rate cuts in China may not be enough to stabilise its slowing economy or halt a stocks collapse. As Ciara Lee reports Europe's main stock markets reopened 2 percent down.
It was a move the Chinese Central Bank had hoped would restore calm. But even after a rate cut, investors weren't convinced. Europe's main stock markets - which had risen on Tuesday after China's moves - reopened 2 percent down before making a comeback. And commodities continued to hover near multi-year lows. But that's not nearly as bad as China where share prices have lost a quarter of their value in little more than a week. (SOUNDBITE) (Mandarin) 65-YEAR-OLD INVESTOR, SURNAMED XU, SAYING: " I feel both angry and heart-broken. After all, it's my hard-earned money." Concerns about China's economy intensified after factory activity shrank and the government devalued the yuan. IG's Chris Beauchamp says the jitters are justified. (SOUNDBITE) (English) IG MARKET ANALYST, CHRIS BEAUCHAMP, SAYING: "China's growth is a lot slower than we thought and much more down towards the 4 percent end which essentially is a recession for China and that means major consequences for commodity markets, for mining stocks, for other major global economies, especially in the U.S." Some say they are partly to blame too. Jeremy Batstone-Carr from Charles Stanley says central banks in developed countries have helped create the conditions for volatility. (SOUNDBITE) (English) DIRECTOR OF PRIVATE CLIENT RESEARCH AT CHARLEY STANLEY, JEREMY BATSTONE-CARR, SAYING: "Ever since 2009 we haven't really had true price discovery across equity markets. And therefore investors are very hard wired into the factors that have enabled financial assets, both bonds and equities and credit, to perform as well as they have over the past six years." The focus may now turn to the Fed and whether it will raise rates in the autumn. But most economists don't think we have a global financial crisis - predicting further deceleration but no crash.