Sterling plunges to new 31-year low

Asian markets in turmoil on Wednesday

Sovereign bond yields plunge around globe, gold buoyant

Bank of England eases rules for banks

Here are the five biggest risks facing the UK economy ​

Sterling

The pound tumbled to a new 31-year low today, crashing below $1.30, on fears over the effect of last month's Brexit vote on Britain's property market and the prospect of cuts in Bank of England interest rates. In early trading in Asia, sterling fell to $1.278; its lowest level since June 1985. The British currency is considered one of the main vehicles through which financial markets can express their concern about Brexit. By evening, the pound recovered some ground and by 7pm was changing hands at $1.2918.

Property market turmoil

Six commercial property funds with holdings worth £15bn have now suspended trading, denying tens of thousands of investors access to their money their money until further notice. Henderson Investors, Columbia Threadneedle and Canada Life were the latest fund giants to close or "gate" their portfolios on Wednesday afternoon, citing mass withdrawals and extraordinary market conditions. They join Standard Life, Aviva Investors and M&G who have also halted trading in their UK property portfolios.

Financial Markets

European stock markets continued to fall on Wednesday, with banking and housebuilding stocks among the worst hit as the fallout from the Brexit begins to unravel. Fears Britain's exit from the EU will trigger global stagnation sent bourses in Europe firmly into the red. US stocks edged higher following a rebound in oil and robust economic data. The FTSE 100 closed down 1.3%, while the DAX and the CAC made losses of 1.8% and 1.9%, respectively.

As investors offloaded risky equities, they sought safety in government bonds and gold. Yields on top-rated debt hit in the eurozone hit new record lows as signs of stress in the UK's commercial property market dealt a fresh blow to the pound. Meanwhile, gold prices surged to a 27-month high as demand increased for the safe-haven asset.