Global shares tumbled again on Wednesday as fears of an economic slowdown escalated and the oil price hit lows not seen since 2003.

European markets collapsed following more sell-offs in Asia. In New York the Dow Jones Industrial Average had lost over 550 points by 1pm ET but staged a late rally and ended the day down 248 points, 1.55%.

In London, the FTSE 100 finished the day down 203 points, or 3.4%, at 5,673, meaning it has fallen more than 20% from its intra-day high of 7122, reached in April last year.

A fall of 20% represents a “bear market” – one where investors expect further sell-offs.

The falls worsened as investors worried about plummeting oil prices. Brent crude oil dropped $1 to $27.7 and US crude headed towards $26 a…