The risk switch remains in the on
position as growth-sensitive assets attempt to keep the rally going
following last week’s better than expected jobs numbers in the U.S. and
comments from the ECB regarding a regional bond buying program.
Germany’s support for the ECB’s purchase of Spanish and Italian bonds
-in hopes of bringing bond yields
to a more reasonable level- has given investors a renewed sense of
optimism that a collapse of the peripheral economies can be avoided.
Thursday’s reporting
of key economic data from the world’s #2 economy, China, will play an
important role in determining if the party continues or whether fears of
further global economic malaise seep back into the investor psyche.
Have a great day!
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