Oil prices fell as new lockdowns across Europe stoked fears over demand, while stocks bounced after suffering their worst week since the height of the coronavirus-driven market turmoil in March.

Brent crude, the international benchmark, dropped as much as 4.6 per cent to $35.74 a barrel in early trading in Asia on Monday, hitting its lowest level since May as economists downgraded their growth forecasts in response to fresh lockdowns throughout the eurozone. West Texas Intermediate, the US marker, was down as much as 6 per cent to $33.64.

Economists now expect the bloc’s economy to shrink 2.3 per cent in the fourth quarter, while the Bank of England is expected to forecast later this week that the UK will at best barely grow in the final three months of 2020.