On Wednesday, U.S. tech stocks sold off as a surge in bond yields weighed on sentiment. Investors dumped stocks with stretched valuations. The weakness has continued into Europe today and, judging by the price action on the major indices, we could be heading towards some volatile times.
The dollar, U.S. bond prices and stock index futures all tumbled as safe-haven gold and yen jumped on the back of a report that China is considering reducing or halting its purchase of U.S. government debt.
Sterling skidded to its lowest levels—bar a "flash crash" in October—in 32 years on Monday, hit by fears that Prime Minister Theresa May will say on Tuesday that Britain is set for a "hard" Brexit out of the EU and its single market.