Global markets were rocked in a panic-ridden day of trading as forced selling and a loss of faith in government intervention deepened the global economic crisis triggered by the coronavirus pandemic.

As London prepared to go into lockdown to try to control the disease, which has infected at least 200,000 people and claimed more than 8,000 lives worldwide, the S&P 500 fell about 9 per cent and oil prices fell to their lowest level in nearly 17 years. Sterling tumbled almost 5 per cent against the dollar to its lowest point since the 1980s.

Indiscriminate selling early on Wednesday in government bonds that are typically considered a safe harbour in times of stress also indicated that funds were scrambling to keep afloat or pay investors back their cash.