Janet Mui, head of market analysis at RBC Brewin Dolphin, said a slew of weak data in recent days had suggested that the economy was more fragile than previously thought.

“Today’s US jobs report disappointed on most fronts, re-igniting concerns of a potential recession,” she said.

The Federal Reserve held interest rates at 23-year highs of 5.25pc to 5.5pc on Wednesday.

Chairman Jerome Powell indicated that a first post-pandemic cut could come in September.

However, investors now expect the Fed to cut interest rates further and faster than previously thought in order to support a flagging jobs market and wider economy.

Traders now expect the Fed will be forced to cut interest rates at all three of its…