'Risk-on' for markets

The stock markets may rise over the short term, but it is too early to conclude that the 'worst is over' for the US economy

Stock markets are ruled by “sentiment”, which drives money in and out of those. Bullish sentiment is described as a risk-on period while bearish sentiment is called risk-off. The US market and economy have a profound influence on emerging markets and it is worth paying attention to them. Until the last week of October, the US markets were in risk-off mode, battered by the relentless rise in the yields of US bonds. The 10-year yields hit 5 per cent in the third week of October, a level last seen in 2007, as the monetary policy seemed to favour “higher (rates)