Animal spirits have come off the boil lately, but these are still early days for deciding if risk-on sentiment for equities has hit a wall or is in a holding pattern that allows markets to consolidate the gains of late. The analysis arises from a set of ETFs to gauge the risk appetite, based on prices through yesterday’s close .
For US shares, a pullback in risk appetite is a bit more conspicuous lately, but the risk-on trend still looks solid via a comparison of US equities vs. medium-term government bonds . This indicator has rebounded recently, which suggests that the bond market will continue to struggle.
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