The bulls took control of financial markets yesterday as a welter of encouraging manufacturing reports from around the world helped put recent concerns about a double-dip recession on the back burner – for now at least.
Waves of buying swept through global equity, commodity and credit markets as government bonds fell out of favour and demand for the safety of the dollar, the yen and the Swiss franc evaporated.
“The theme is very much ‘risk on’ and with risk aversion having dominated for large parts of the last couple of weeks, many traders will be feeling hugely relieved,” said James Hughes, analyst at CMC Markets.
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