Premarket: Global stocks drop and yen rises as volatility reigns

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Investors struggled to find their footing in a wild week for markets

European stocks fell and U.S. futures slipped on Thursday after turbulent sessions in Asia and on Wall Street, as investors struggled to find their footing in a wild week for markets.

Futures for the U.S. S&P 500 were down 0.4 per cent. The index fell 0.8 per cent the previous day, having given up gains of as much as 1.7 per cent in morning trading. The S&P 500 tumbled 3 per cent on Monday and sits 2.8 per cent lower for the week - although it remains around 9 per cent higher for the year.

The rally has forced investors to dramatically unwind carry trades, where they borrow cheaply in Japan to buy dollars and other currencies to invest in higher yielding assets such as bonds and tech stocks, and helped trigger a 12 per cent plunge in Japanese stocks on Monday. The yield on the benchmark 10-year U.S. Treasury note was last down 6 basis points at 3.909 per cent, after rising on Wednesday following a weak debt auction.

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