Sergio Aguero had given City a half-time lead after Arsenal new boy Danny Welbeck saw his shot come back off the post, but the Gunners hit back in the second half with stunning goals from Jack Wilshere and Alexis Sanchez.
Martin Demichelis headed home from a corner late on to level and City might well have claimed a winner as they twice hit the woodwork before Samir Nasri saw a goal ruled out for offside, but ultimately the spoils were shared.
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