EUROPE: It's a car crash!

European markets are getting wiped out.

The FTSE 100 just closed down 2.83%, or 172.87 points at 5,935.84.

Germany’s DAX is down 3.68%, France’s CAC 40 is down X%, and Euro Stoxx 50 is off 3.35%.

The reason? Volkswagen and the Asia Development Bank.

The German car maker’s growing emissions scandal is casting a dark shadow over both the US and Europe, and traders are in a bearish mood.

Here’s Connor Campbell, a financial analyst at SpreadEx:

The Dow Jones dropped by the 190 points the futures had suggested, as Ford (down 3%) and General Motors (down 2.7%) joined in with the auto sector sell-off that began in the wake of Volkswagen’s shameful emissions-deceit admission. This limp start to the American session meant that the FTSE, DAX and CAC all saw no change to their own hefty declines, with Volkswagen and Porsche (both falling by nearly 17%) joined by Fiat Chrysler (down 5.6%) and Daimler (down 6%).

Meanwhile, in London miners are tanking after the Asia Development Bank cut its forecasts for growth in Asia and India. That’s bad for miners, as the two heavy-weight economies gobble up huge amounts of raw materials.

Commodities giant Glencore, which has been struggling to get to grips with its massive debt pile by issuing new shares, was the biggest faller on the FTSE.

Glencore tanked 10.63% to 106.35p.

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