Global equities are experiencing their worst two-day spell of trading this summer, heightening the prospect of more central bank action.

Negative short-dated bond yields in the core eurozone and new lows for US Treasury benchmarks yesterday were a warning that prices for equities are poised for larger declines, particularly given that August, a month renowned for poor liquidity, is on the doorstep.

Beyond the bad headlines from the eurozone, investors have plenty more to worry about than the possible break-up of the single currency or failure of regional banks. Slower growth in emerging market economies is adding to the evidence that corporate profit growth is at its most vulnerable juncture since the financial crisis.