Citigroup’s share price fell to its lowest level in nearly a decade on Tuesday after an analyst forecast an $18bn writedown in the first quarter and the head of Dubai’s sovereign wealth fund said the bank would need more funds from outside investors.

The news sent the stock down as much as 8 per cent earlier in the day before a brief afternoon rally helped it to pare the losses. The shares closed down 4.3 per cent at $22.10 – their lowest level since December 1998.