World markets pummeled by Chinese economic stall

Downbeat data showed factory activity in China hit a three-year low, fuelling concern over the health of the world's number two economyWorld stock markets plunged further on Tuesday as more evidence emerged of China’s economic slowdown, triggering heavy sell-offs from Tokyo to New York and spurring cuts to global growth forecasts. The spark for the day’s rout came from fresh official data that showed industrial activity in China stalling. Adding her voice to private sector economists that have already cut their world growth estimates, International Monetary Fund managing director Christine Lagarde said growth would likely be weaker than the 3.3 percent estimate the IMF made just two months ago.

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