Investors fled equity markets and rushed to the safety of government bonds on Thursday after a jump in US joblessness stoked fears of a severe global recession.

The S&P 500 index, which had tumbled 6.1 per cent after a late sell-off on Wednesday, extended its slide to close at its lowest level in more than 11 years. It fell a further 6.7 per cent, on Thursday to close at 752.44, its lowest closing level since April 1997.