Chinese stocks fall again, oil slides to six-year low and Chilecon Valley

The daily briefing “FirstFT” from the Financial Times.

Chinese stocks continued to plunge on Tuesday, with the benchmark Shanghai Composite falling as much as 6.4 per cent at the open before paring its decline to 4.3 per cent at lunch.

However, the panic outside China subsided amid volatile trading. Australian equities rose 2.3 per cent and Hong Kong’s Hang Seng improved 1.6 per cent. S&P futures indicate a 1.2 per cent improvement in New York. (FT)

In the news

Fed’s cloudy view The China-induced equity slump has added an extra challenge to policy makers at the US central bank who are readying to raise interest rates for the first time since the financial crisis. While officials at the Federal Reserve have emphasised the weight placed on the US economy, labour market and inflation expectations, traders have been rapidlyreducing their expectations that the central bank will pull the trigger in September. (FT)

Oil slides to six-year low Oil slipped more than 6 per cent to levels last seen during the financial crisis and a broad index of commodity prices slid to the lowest point this century amid doubts over China, the engine room of demand growth over the past decade. West Texas Intermediate, the US standard, slid to $38.24 a barrel while Brent declined to $42.47 a barrel. (FT)

UK chancellor warns on exposure to Asia George Osborne warned on Monday that Britain’s economy was exposed to a global downturn and its vulnerability reinforced the need to resolve long-standing domestic weaknesses. “Everyone’s concerned about the situation in Asian financial markets,” he said while on a trip to Helsinki. (FT)

The carbon credit con The vast majority of carbon credits generated by Russia and Ukraine were “hot air” and did not represent cuts in emissions, according to a new study from the Stockholm Environment Institute. In some cases, chemicals known to warm the climate were created and then destroyed to claim cash through the credit system. (BBC)

Private affairs Canadian police are investigating reports that two Ashley Madison customers committed suicide after hackers published their details online. Officers said they had also received reports of criminals trying to extort money from users of the site, which specialises in matchmaking married people who wish to be unfaithful. (FT)

It’s a big day for

US housing A report from the commerce department is expected to show that purchases ofnew homes increased in July after a surprise fall in June. (NYT)

Iran’s nuclear deal The International Atomic Energy Agency is due to meet to discuss how tofinance the monitoring of the landmark nuclear deal with world powers. The agency’s director-general estimated the new duties would increase its costs by about EUR1m a month. (Reuters)

Food for thought

“You can’t outrun your fork” Glossy mags and expensive personal trainers tend to promote the idea that if you work out regularly, you will soon be sporting the body of your dreams. But there is no scientific support for this notion, say researchers who argue that “people tend to eat back their exercise.” (FT)

Icelandic babies: hidden victims If you are pregnant, try to avoid financial crises – they are bad for your baby’s health. That is the conclusion of new research from Iceland which found that babies in the womb during the first week of the country’s 2008 financial crisis were 120g lighter and more likely to suffer neonatal diseases. (FT)

Young people wanted Germany is rapidly going grey. According to UN data, one in six Germans will be over the age of 80 by 2050 – and immigration won’t do enough to turn back the tide. The country’s ageing population is threatening its position as Europe’s largest economy. (FT)

What makes an investment banker? The absence of a clear professional identity. Or at least so say researchers from London who have coined a new term – “teflonic identity manoeuvring” – to explain how such bankers actively avoid adopting any kind of identity linked to their work. (Quartz)

Chilecon Valley Start-Up Chile, a programme developed by the country in 2010 to diversify its economy away from commodities, has encountered some hiccups. Lack of early-stage investors and the demand for large controlling stakes in the companies are proving obstacles. (WSJ)

Video of the day

Grey Monday The scariest day on world markets since the financial crisis was bad, but did not quite qualify as a new Black Monday. John Authers reports on hectic trading, and on hopes that a change in US monetary policy will be delayed. (FT)

This article is published in collaboration with FirstFT. Publication does not imply endorsement of views by the World Economic Forum.

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Author: FirstFT is the Financial Times’ editors curated free daily email of the top global stories from the FT and the best of the rest of the web.

Image: A Chinese national flag flutters at the headquarters of a commercial bank. REUTERS/Kim Kyung-Hoon.