Global stocks tumbled in chaotic trading and investors sought refuge in US government bonds after a crash in the price of oil rocked financial markets already reeling from the impact of coronavirus.

Wall Street’s S&P 500 plunged 7 per cent shortly after the opening bell, triggering a “circuit breaker” meant to curb panicky selling. After the 15-minute halt was lifted, they rebounded slightly before dropping once again in afternoon trading in New York by roughly 8 per cent.

“This is total panic,” said Susan Schmidt, head of US equities for Aviva Investors America. She added that the selling could be overdone as consumers are likely to remain active even in the rare event of a widespread quarantine. “If you are housebound you’re not cut off from society.”