What's going on?

On Tuesday, most global stock markets had their first positive day since the Brexit vote. Stock prices came nowhere near making up for the $3 trillion that were lost globally on Friday and Monday � but hey, at least they were up 1-3% in most regions.

What does this mean?

European stocks managed to finish up about 2.5%, while their American counterparts climbed almost 2% (note: stocks didn�t drop as much in the US as they did in Europe following the Brexit vote). Even the British pound managed to rise almost 1% against the US dollar. This whole saga is far from over, but the fact that global markets managed to stabilize themselves is certainly important as investors look to move forward.

Why should I care?

The bigger picture: Governments and central banks helped improve morale. The Italian government appears to be preparing to inject money into banks in an effort to stabilize them (Italian bank stocks had been particularly hard hit). Central banks around the world (especially in the US, Europe and Britain) lent money to banks so that their operations were not disrupted. It also seems increasingly likely that the Bank of Japan will act (once again) to try to boost its economy. Collectively, a big effort has been made to limit the risks of knock-on effects to the overall financial system.

For the markets: The worst MIGHT be over. Perhaps we shouldn�t jinx these things, but Tuesday�s market tone certainly suggested that buyers of riskier investments (like stocks) had returned to the market. Investors, presumably, feel that the Brexit-induced selloff has presented good buying opportunities. While many cautioned that the ramifications of the Brexit will continue to be felt most strongly in the UK (i.e. it�s far from out of the woods yet) as well as in Europe, there is optimism that the rest of the world can return to a sense of normalcy. We shall see�