European markets are falling again today following the brutal sell-off in the US and Japan overnight.
A renewed tumble in the price of oil, which saw the price of US oil drop below $50 (£32.7) per barrel for the first time since the financial crisis, had battered stocks yesterday, sending the FTSE 100 down by 2 per cent.
That rout continued in other markets, with the S&P 500 falling by nearly 2 per cent and Japan’s Nikkei 225 index plunging by 3 per cent.
And European markets have dipped further into the red in early trading this morning as the market looks ahead to Wednesday when new data is expected to show that the eurozone slipped into deflation in December.
Conversely, government bonds in the US and UK have again been rallying as investors flee to perceived ‘safe haven’ assets, with the 10 year US government bond yield dropping back below 2 per cent.