Global equity markets tanked on Monday 5 August, but have bounced back today. The rout was led by the Nikkei, reflecting the fact that the yen has now decisively stopped falling.

In a longer-term perspective, recent equity-price movements are so far pretty small beer: most developed markets and particularly Japan still look expensive, with the notable exception of the UK, which is possibly adversely affected by the impact of Brexit.

Turmoil in global equity markets originated in Japan