European stock markets opened with marginal gains this morning following a sell off on global stock markets yesterday, which continued overnight in Asia.
Emerging market stocks went into bear territory, which is defined as a pullback of 20% from their peak.
The US dollar hit a 13 month high and sterling slumped again.
Much of the blame for the souring sentiment has been placed at Turkey's door.
However, the lira stabilised in recent days and made some gains yesterday as the government introduced some supportive measures for the currency.
Garret Grogan, Global Head of Trading, Bank of Ireland Global Markets, said it was certainly too early to say that it was 'crisis averted' for Turkey.
"One of the reasons for the stability is that Turkey has secured an investment of $15 billion for Qatar," he said.
"In addition, the Central Bank has been restricting the ability of foreigners to borrow the currency to sell it."
Part of the issue for Turkey, and other emerging market economies and currencies, is the recent strengthening of the US dollar.
"There's been a seismic shift in activity led by the US Federal Reserve which has raised rates five times. The market is pencilling four rate hikes this year.
"And the dollar is a safe haven. When there's volatility in emerging markets, the dollar will benefit."
Meanwhile, the euro has lost a bit of ground in recent days - not necessarily an unwelcome move, given its strength in recent months.
"The euro fell by 2%, triggered by an article in the Financial Times saying the European Central Bank was concerned about the exposure of European banks to Turkey. It's a welcome move for exporters. It makes our exports more competitive abroad," Garret Grogan explained.
Finally, the pound plunged yesterday following the publication of inflation figures in the UK, but most of the recent depreciation has been against the US dollar.
"Sterling is down 6% against the dollar so far this year, but little against the euro. We saw a high of the year last week of over 90 pence. It's gone back below that level again."
"Euro-sterling has actually been incredibly stable this year. It's hard to believe that, given the headlines of late. We've seen the second tightest range in euro-sterling since the birth of the euro.
"What's remarkable is that, even though we saw the euro go above 90p, there was no panic. There's a feeling that exporters have adjusted to the new normal. On top of that, we have seen increased hedging, but that's prudent when a currency is being driven by political factors," he concluded.
