This will keep investors on the defensive and there's a gnawing feeling that, with rates and borrowing costs increasing so fast, something, somewhere will break. But all eyes are on British markets, where sterling and government bonds are under intense pressure. The International Monetary Fund said on Tuesday it is "closely monitoring" developments and urged the government to rethink last week's fiscal package. Chinese regulators have asked banks to revive a counter-cyclical factor in their daily fixing rates for the yuan exchange rate, which could help slow the currency's decline. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

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