Go to http://www.cityindex.co.uk/market-analysis/ for more trading insights from spread betting and CFD trading provider City Index. Here, Sophia Ziaee brings you the key activity shaping the markets on 9th August. Headlines include: - It has been a hectic day for the markets. The financial crisis and riots in London are both proof that the global economy is entering a new, dangerous phase dubbed Ice Age 3. - Even as Asian equity markets pulled back from another day of staggering losses as they closed, European shares tumbled for an eighth session running, with news of an unexpected drop in British factory output in June highlighting the weakness of the economy. - The FTSE 100 fell through the 5,000 point mark for the first time in over a year on Tuesday, but a strong opening on Wall Street helped the London market recover. The Bank of England will announce its latest quarterly forecasts on Wednesday. It is very likely to cut its economic projections, following the second-quarter GDP data (which showed that the UK economy only grew by 0.2% between April and June). Spread betting and CFD trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.