Investing.com - Global stock markets have recouped more than half of their losses from the two-day equities rout sparked by the British referendum, which had erased $3 trillion in value from global equity markets, as investors wagered central banks would ultimately ride to the rescue with more stimulus.
Investors are back in risk-taking mode, amid growing confidence that the world's major central banks will unleash a fresh flood of liquidity to counteract the negative economic shock from the Brexit vote.
Market players are betting that the European Central Bank will expand its asset-purchase program in the coming months.
Meanwhile, in the U.S., traders all but ruled out further rate hikes by the Federal Reserve this year in the aftermath of Britain’s shock vote to leave the EU.
Elsewhere, Bank of Japan Governor Haruhiko Kuroda said earlier this week that more funds can be injected into the market should they be needed, fueling speculation of further stimulus from the BoJ.
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