In Germany, manufacturing output has fallen at its sharpest rate in almost seven years

Fears of a global recession sent bond yields tumbling to fresh lows as weak economic data from the US and Germany spooked investors.

Demand for safe haven assets rose after IHS Markit data pointed to a slowdown in US manufacturing. A similar survey for the eurozone found that the sector contracted for the second consecutive month.

The growing concerns about a slowdown in global economic growth, compounded by the ongoing trade war between the US and China, also pushed equity markets sharply lower this afternoon. In London the FTSE 100 was 2 per cent, or 147.72 points, lower at 7,207.59 while France’s CAC40 also dropped 2 per cent with Germany’s Dax down 1.6 per cent.

It was the same negative picture on Wall Street. By