Stock markets plunge as investors fear global economic slowdown

Dow ends day down 248 points while slumping oil price and gloom at Davos sends FTSE 100 tumbling officially into bear market territory

" Dow suffers steep falls as FTSE 100 enters bear market - live updates

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%.

Ugly, very, very ugly, describes current equity markets, with momentum swinging negative yet again and the bears firmly in control. The fledgling hope from yesterday that markets were on the turn has been quashed by sharp overnight falls in Japan and Asia, which has seen European markets fall aggressively. With every upturn being followed by deeper falls, investors are increasingly wary as it becomes more and more difficult to determine what might happen next.

Oil prices remain under pressure, but the consumer benefits of lower energy prices and higher disposable income have yet to filter through to the wider equity market, which remains unremittingly negative in the face of further prospective asset sales by oil exporting countries' sovereign wealth funds.