Global markets fell for a third day on Monday as fears over the global impact of Donald Trump’s tariffs continued.

European markets closed lower, with London’s FTSE 100 falling 4.4% to 7,702, its lowest level in more than a year. Shares in Paris and Berlin also dropped.

Trading on America’s main stock market indexes had been skittish – shares initially fell by more than 4% before briefly turning positive on a rumour that the US president was considering a pause on introducing import taxes.

The White House declared this “fake news” and the S&P 500, the Nasdaq and the Dow Jones resumed their downward journey although the declines were not as steep.

Last Wednesday, Trump announced tariffs on the…