In the US, the Dow Jones is now down 1.2% at 26,116.99 while the S&P 500 has fallen 1.3%.
In Europe, the UK's FTSE 100 index is now down 1.5% for the day at 7,267.80, while Germany's Dax index is 1.3% lower at 12,128.06.
'Alarm bell' for global economy
Back the PMI data from earlier, which since its release has knocked stock markets across Europe, including Germany's Dax index illustrated above.
David Cheetham, analyst at Xtb, says the economic releases are "worse than expected" and "have sounded the alarm bell not just for the bloc, but also the
global economy, by providing further evidence of a worldwide slowdown in
"These industry surveys are keenly followed, and unlike
employment or GDP figures they are commonly seen as leading indicators due to
the nature of their composition which is heavily weighted to future
The FTSE 100 is now down 54 points - around 0.75% - at 7,300.
Indices across Europe are also lower. In Germany, the Dax is down 0.6% and the French index the Cac is off 0.8% after that PMI data mentioned earlier.
US-China trade talk hopes lift European stocks
Major stock markets across Europe are trading higher on hopes that the US and China will reach an agreement over trade.
In London, the FTSE 100 rose by nearly 1% to 6,874.95.
In Germany, the DAX is ahead 0.83% at 10,836.92 while in France, the CAC-40 is up 1.46% at 4,788.15.
Connor Campbell, at analyst at Spreadex, said: "The main driver of this optimism appears to be the ongoing
trade talks between the US and China in Beijing.
"Not that there is anything too substantial to justify such
positivity, but rather a lack of mood-dampening comments has
green-lit an early European rebound."
On Monday evening, US Commerce Secretary Wilbur Ross reckoned that America and China could reach a deal that "we
can live with".
European shares still doing well
Europe's stock markets have come off their earlier highs but are still performing strongly thanks to signs of a thaw in the US-China trade spat.
The FTSE 100 is currently up 118.75 points, or 1.70%, at 7,098.99.
In France, the Cac 40 is 51.02 points, or 1%, higher at 5,054.94, while Germany's Dax is up 247.79 points, or 2.2%, at 11,505.03.
FTSE slips on weak Chinese data
The London market is back at 7,000 after China's manufacturing sector
reported its weakest growth in two years on Friday morning.
As world leaders gather in Argentina for the G20 summit, the
FTSE 100 slipped 0.8% as shares in miners such as Rio Tinto, Anglo American and Antofagasta slumped.
Connor Campbell of Spreadex says a slowdown in China’s manufacturing sector is not that surprising given the country’s
trade war with the US.
"That puts even more pressure
on President Xi Jinping to try and move in the right direction with [Donald] Trump in
Buenos Aires, something that seems like a huge ask given the latter’s bellicose
rhetoric this week."
Eurozone indices have moved in the same direction, with Germany's DAX and the French CAC both down 0.6%.
Europe heading lower
The major stock markets in Europe are on course to end the day lower as Italy's budget woes, international tensions with Saudi Arabia and disappointing company news out of the US all weigh on markets.
Germany's Dax stock market index is down more than 2% and the CAC in Paris is off more than 1.5%. Italy's stock market is off more than 1%.
The FTSE 100 index is 1.2%, or 85 points, lower at 6,957.27.