The recent rise in volatility across many financial assets and the accompanying re-pricing of risk reflects a bout of investor nervousness that could provide a foretaste of a longer period of uncertainty.

Robert Lind, economist at ABN Amro, views the recent rise in volatility as a reflection of worries over macroeconomic fundamentals. Mr Lind says: “We see global economic imbalances as the biggest threat to the stability of the world economy and financial markets.”