Some of the world’s largest investment firms expect the rout that swept through global markets this week will take longer to settle, with some pundits even warning that the sell-off did not go far enough to moderate high valuations.

Sharemarkets around the world have managed to pare back some of the brutal losses sustained in Monday’s global rout – in which the S&P/ASX 200 tumbled the most since 2020 – after soft US jobs data reignited fears of a recession in the world’s largest economy.