Four steps that plunged the FTSE into a 'bear market'

As London's leading stock market index falls into a "bear market", we look at the events that have knocked the FTSE 100 since its April 2015 peak.

Despite booming jobs growth in the US and UK, the arrival of quantitative easing in the eurozone, and the election of a Conservative majority during May's general election, the index has fallen into "bear" territory.

A bear market, technically defined, occurs when a stock market index closes more than 20pc below its previous peak - in this case, April 27, 2015, when it ended on 7103.98.

During Wednesday's trading, the FTSE 100 went 20pc below that level on an intraday basis.

Here are the four steps that caused that decline:

Greek debt saga

April 27 to July 7: FTSE loses 9.5pc

The Greek debt debacle drove the FTSE down throughout the period, until it became clear that the embattled country would be granted yet another bail-out, allowing it to keep its place in the eurozone for a while longer.

Protestors in Athens in 2015

Neither was the FTSE helped by uncertainty surrounding the UK general election, as the country appeared at risk of another coalition government. The Conservative majority victory in May failed to end the sell-off.

Chinese 'hard landing' fear

August 5 to August 24: FTSE loses 12.6pc

Many of the FTSE 100's companies have large international operations or sell primarily abroad, leaving them exposed to changes in the global economy.

Warnings that China, the world's second largest economy, was facing a "hard landing" - slowing down much more rapidly than previously anticipated - sent ripples through global markets.

The Shanghai stock market crashed in mid-summer 2015

These tensions crescendoed on "Black Monday", which wiped billions off the value of FTSE stocks. Particularly hard hit were commodities and luxury goods producers, both of which have been reliant on Chinese demand.

Opec loses grip of oil

December 2 to December 14: FTSE loses 8.5pc

The FTSE suffered a reverse Santa rally last December, as the Organisation of Petroleum Exporting Countries (Opec) failed to agree on new production targets - effectively leaving the taps on, and flooding the world with more and more oil.

The world is awash with oil, sending prices down  Photo: AP

With so much supply, oil prices weakened further, and the FTSE's commodity producers suffered the consequences.

China worries resurface

December 29 to January 20: FTSE loses 9.4pc

Fears over the Chinese economy came to the fore yet again just after the Christmas trading break. New data signalled that Beijing's leaders were willing to allow a more rapid cooling of the economy than had been expected.

Chinese stocks have continued their wild ride

The price of Brent crude fell below $28 a barrel - its lowest level since 2003 - and company shares fell on fears that global demand is weakening.