US equities staged a late recovery on Thursday after the London stock market tumbled more than 4 per cent, its biggest one-day fall since March 2003, as a flight from risky assets fuelled further market turmoil around the world.

The FTSE 100 index closed 250.4 points lower at 5,858.9, falling below the 6,000 level and hitting its lowest levels since September 2006. Financial and mining stocks suffered most.