Dow Jones Industrial Average Climbs As Brexit Relief Rally Continues

This story was updated at 9:40 a.m. EDT.

U.S. stocks were moving higher Thursday, following European and Asian markets higher, as the immediate market flurry over Britain’s vote to pull out of the European Union settled.

European stocks and the pound held on to a third day of gains. The rebound was not enough, however, to offset the sharp losses suffered in the aftermath of last week’s vote, which put global stocks on track for their worst monthly performance since January.

Renewed concerns over global growth and oversupply have also forced oil prices onto the back foot again.

The U.K.’s main stock index is now back above where it was before the Brexit vote last Thursday slammed global stock markets.

The MSCI All-Country World index was up 0.3 percent, but is set to end the month down 1.6 percent, its worst month since a troubled start to the year. It will also be the first time since 2011 that global stocks will have fallen for two successive quarters.

Worries that a weaker Chinese yuan could spark deflation, seen as a key reason for the worst beginning to the year for global stocks, were reignited Thursday after Reuters reported China’s central bank was willing to let the currency fall further.

“Since the beginning of the year investors have faced a series of macro changes to the investment landscape,” said Sean Darby, chief global equity strategist at Jefferies, adding that Britain’s decision to leave the European Union last week was only the most recent shock to investor confidence.

U.S. stocks rallied for a second day Wednesday as the initial panic surrounding Britain’s vote to leave the European Union settled and investors sought out bargains.

The so-called Brexit verdict early Friday sent shock waves through global markets and wiped out about $3 trillion in a two-day sell-off. The Dow had plunged as much as 871 points by Monday’s close in reaction to the U.K.’s Brexit vote but has since recovered half those losses.

In other news, former London Mayor Boris Johnson abruptly pulled out of the race to become Britain's next prime minister in a shock move that upturned a political order shaken by last week’s vote to leave the EU.

Johnson, whose support for the campaign to leave the EU was widely considered one of the decisive factors in the campaign, had been bookmakers’ runaway favorite to succeed David Cameron, who quit last week after failing to persuade British voters to stay in the bloc.

Johnson’s unexpected departure from the race, announced just minutes before the party unveiled the list of candidates, shows the speed with which the political landscape is being reshaped.

Reuters contributed to this report.