Markets are likely to see a summer of volatility, a finance expert has warned, as economists watch for developments in the Middle East.

Chris Beauchamp, chief market analyst at online trading platform IG, said: “Markets are in absolute turmoil this morning thanks to the Nikkei 225’s biggest one-day drop since 1987, which has wiped out the index’s gains for the year.”

He said that the FTSE and European stocks were likely to suffer a bad day, while “it is on Wall Street where a fresh wave of selling is on the cards”.

“Investors continue to flee tech stocks, and the Nasdaq 100 is expected to open down 1000 points lower from Friday’s close, a loss of over 5%.”

“This is a perfect demonstration of what happens when everyone tries to sell at once.

"Such moves don’t stop in a single day and we likely have a summer of volatility ahead of us, particularly as we await developments in the Middle East.”