Shock waves from the overnight rout on Asian markets have been felt through the European economy this morning, with all major European indexes suffering.

The pan-Europe FTSEurofirst 300 has lost €1.1tn in value since the start of this month, putting it on course to register its biggest monthly-drop since October of 2008.

Within its first three hours of trading today more than £40bn was wiped off the value of the FTSE 100 in London. 

The market value of firms on the Irish stock exchange fell by €7.4bn between Wednesday and Friday of last week.

The value of stocks across the global economy has shrunk by $5tn since the on-set of this current phase of economic volatility. 

This market unrest has provoked by China's decision to devalue the yuan last week.

"Monetary policies have been very expansive in recent years and an adjustment is necessary," said Carlo Cottarelli, an IMF executive director - he added that it is “totally premature” to say that China is facing an economic crisis.

"China's real economy is slowing but it's perfectly natural that this should happen ... What happened in recent days is a shock on financial markets which is natural," he continued.