Risk appetite is returning to a variety of financial markets this morning. Depending on the market, you can formulate financial spread betting strategy by taking into account risk appetite and its effects.
Stocks are up this morning, as are high yielding currencies, since risk appetite contributes to riskier trades. Safer investments, like bonds, are down as investors look for riskier assets. Reuters reports on risk appetite:
"If we take Mr Bernanke's and Mr Kohn's comments as implying
that they will move towards easier rates again next month, which
seems to be the consensus view, it clearly is helping risk
appetite today and the trades we are seeing are in line with
that," said Simon Derrick, head of currency research at Bank of
New York Mellon.
