Only a day after the biggest leveraged buyout in history, the $43.4 billion takeover of TXU, world stock markets are in a nervous mood.

After a run that has taken Wall Street to an all-time high and the FTSE 100 to within 500 points of the peak at the turn of the century, investors have taken a slice off the top.

The pretext was a 9 per cent slide in the Shanghai Composite index, hawkish comments from a retired Alan Greenspan and jitters over Iran.

In London, it was the more volatile second-line indices that came off worst, with the FTSE 250 losing 272 points.

Stock markets periodically look for reasons to sell off. But today’s gyrations raise the question of where London’s next leg-up will come from.

This year’s crop of hoped-for bids has yet to materialise. They will be needed unless TXU is to be seen as the top of the market.

Explore Markets

• United States

• Europe

• Japan

• China

• Russia

• The Gulf

• India

• Africa

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive