Investor risk appetite saw a broad improvement this week as a string of positive financial and economic indicators – culminating in Friday’s non-farm payrolls figures – encouraged hopes that the US recession might be coming to an end.
Global equities climbed to their highest levels of the year, oil rose above $70 a barrel and corporate bond spreads narrowed back to levels last seen in October, while government bond yields touched fresh six-month highs. Interbank lending rates remained near record lows.
