Renewed doubts over prospects for a rapid recovery in the global economy caused risk appetite to weaken this week, dragging equity markets lower and pushing government bond prices higher.

Wall Street retreated on Friday, declined 5 per cent over the week. In London, the FTSE 100 managed to rally for a second day on Friday but lost 2.5 per cent over the week, while the FTSE Eurofirst 300 fell 3.1 per cent this week.