Global equities extended their rally amid bets central banks will help ease the impact of the UK's decision to leave the European Union on the global economy and corporate profits.
"There are very reasonable expectations from central banks globally, especially from the US Federal Reserve, the [European Central Bank] and the [Bank of England], to provide more liquidity, guidance and clarity to support markets," Stephen Wood, chief market strategist for Russell Investments in New York, told Reuters.
The US dollar meanwhile fell amid bets the Fed won't raise interest rates any time soon, and that it might actually cut them instead to ease the Brexit turmoil.
In Europe the Stoxx 600 Index ended the day with an increase of 3.1 per cent from the previous close. Germany's DAX index rose 1.8 per cent, France's CAC 40 index jumped 2.6 per cent, while the UK's FTSE 100 index surged 3.6 per cent, boosted by rebounds in financial stocks.
"The counter-movement to the heavy losses after the Brexit shock show that perhaps some realism is starting to set back in, or perhaps that there is hope for an adequate solution," Thorsten Engelmann, a trader at Equinet Bank in Frankfurt, told Bloomberg. "We still don't know whether a new referendum would be an option for the UK, or whether there's a way to go around it."
