Massive Yen carry trade aftershocks shake global markets

The aftershocks of a massive yen carry trade are still rippling through global financial markets, with further unwinding expected in the coming days. The Nasdaq Composite and S&P 500 managed to trim losses after a severe selloff, while Tokyo markets rebounded. Investors remain wary of more volatility, as yen-funded trades used to acquire stocks are being unwound following a surprise rate hike by the Bank of Japan.

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By Carolina Mandl and Laura Matthews

Investors said the aftershocks of a massive carry trade that has reverberated through global financial markets wasn't done yet, with more unwinding in the days ahead raising the risk of shake-outs to other assets.  

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