The first fall in US private sector payrolls since January has not been able to shift traders from the belief that a fresh month deserves a sunny disposition, as positive manufacturing data out of the US and Asia provides risk assets with a good start to September

A sense that fiscal and monetary authorities are bumbling their lines in the face of a dangerous plot twist for the global economy is gripping markets, pushing traders back into havens such as core government bonds and the yen

Money pulled from shares is being pumped into bonds as the investing public, already worried about jobs and falling house prices, remains sceptical about the market

Asian stock markets are slipping backward as investors continue to fret about the faltering global economic recovery, and the yen’s strength again dents Japanese shares

Global market overview: After US data on goods orders and home sales added more evidence of a slowing economy, US shares slipped further – though the yen has fallen back from 15-year highs