Global investors dumped equities in July and raised bond allocations after Britain's vote to leave the European Union and subsequent signs of damage to economic growth prompted a dash toward fixed income.
The safe-haven yen rose sharply against the euro and dollar while sterling fell to its lowest in more than 30 years today, as currency markets fretted about more signs of economic stress stemming from Britain's decision to leave the European Union.
European equity markets are expected to open a little lower this morning following a subdued session in Asia overnight and some selling in the afternoon in the United States on Wednesday, as investors sought shelter from the wild swings that could lie ahead.
Global stocks rose sharply today and sterling strengthened broadly while safe-havens including the yen and gold retreated, after polls showed support for Britain staying in the European Union regaining momentum before Thursday's referendum.
Sterling rose half a percent in early London trading today and the euro added to gains in the past 24 hours on expectations that the killing of a pro-European Union British lawmaker may alter the balance of opinion in Britain's referendum on EU membership.