Fears grow of repeat of 2008 financial crash as investors run for cover

As leaders gathered in Davos, FTSE 100 was gripped by panic selling and entered bear market with Dow Jones also plunging

Fears that the global economy could be heading for a repeat of the 2008 financial crash have sent shockwaves through financial markets - prompting a rush to safe havens by investors.

Oil prices fell to a fresh 12-year low on Wednesday and metal prices tumbled in response to warnings that China's slowdown could derail the global recovery at a time when central banks, which came to the rescue in the credit crunch, have only limited firepower.

Related: If this market turmoil forces a US rate cut, the outlook will truly be grim