By Jonathan Davies

European shares failed to extend Tuesday's bounceback, dipping as fears continue to grow over China's economy.

In morning trading, the FTSE 100 was down by more than 1% after rising back above 6,000 points on Tuesday.

As on the previous two days, shares in Paris and Frankfurt followed London with falls of 1.3%.

Overnight, shares in China fell 1.27% after a day of fluctuating in and out of positive territory. Following Black Monday and Black Tuesday, Chinese shares have lost around 16%.

Yesterday, the People's Bank of China cut interest rates by 0.25% to 4.6% in an attempt to allay fears and bring the markets back under control.