China drop drives global shares to new year rout

Financial markets are starting 2016 in turmoil as a rout in China rekindled concern slowing growth there will spread, while tension between Saudi Arabia and Iran added to geopolitical unease.

Global equities crumbled toward the worst opening to a year in at least three decades.

The Dow Jones Industrial Average sank more than 400 points as data showed US manufacturing sank the fastest in six years.