Anti-capitalist protesters in London are continuing their demonstration after the movement that began with Occupy Wall Street spread worldwide.

Thousands descended on the area around the London Stock Exchange on Saturday in a bid to replicate the huge demonstrations taking place in New York.

As night fell, protesters had pitched tents at the foot of the steps of St Paul's Cathedral after police cordoned off Paternoster Square where the Stock Exchange is located.

Scotland Yard had said it would be "illegal and disrespectful" to camp in front of the cathedral, but a spokesman for the Metropolitan Police later said: "We are not going to move anyone at this time."

The force said it had made efforts to ensure the protest was largely peaceful. Five arrests were made throughout the day - three for assault on police and two for public order offences.

A spokesman for the protesters said the demonstration was to "challenge the bankers and the financial institutions which recklessly gambled our economy. This occupation and 20 other occupations all around the UK have been directly inspired by what's happening all across America and especially Wall Street."

A Metropolitan Police spokesman said the protest had been "largely calm and orderly", but he urged protesters to leave the area around the cathedral. However, Occupy London Stock Exchange supporter Anna Jones claimed "a disproportionate amount of force" was used by police against protesters outside St Paul's. She said: "We have seen people, kettled, grabbed and thrown off the steps forcefully by the police. This was entirely unnecessary. None came here to have a fight with the police."

Earlier, police began removing protesters from the cathedral steps, leading to physical confrontations, and officers expressed concerns about the cathedral's pillars being damaged by people sitting on its steps. A Met spokesman said a "containment" was carried out in the churchyard to "prevent a breach of the peace".

Well-known activists including Julian Assange and Peter Tatchell were among the protesters in London. Mr Assange, creator of the WikiLeaks website, addressed the crowds on the steps of St Paul's.

Protests also took place on the streets of Edinburgh and Dublin, which passed off peacefully. More than 100 demonstrators turned out to protest in St Andrew Square, Edinburgh, while hundreds also took to the streets of Dublin.

PA, photo Angela Madueno