Risk-Seeking Behavior Evident Everywhere – RBC Capital

Risk-Seeking Behavior Evident Everywhere by Charlie McElligott, RBC Capital

OVERNIGHT: All’s well, with risk-seeking behavior evident everywhere: Overseas, we see Brent crude reclaims its 200dma, Asian EM shows a number of equities markets breaking-out to YTD highs + (Kospi, Hang Seng, Nifty, SE Thai, with Jakarta Comp / Indonesia near all-time highs), DAX bouncing off 200dma and making a new YTD high as we speak, while FX momentum factor continues working, as evidenced by the DB G10 FX Carry Basket +1.4% since the start of August.  And it goes without saying that EU and UK credit markets are ‘en fuego’ (the good-kind), with bond traders riding on the coattails of the respective central bank buy programs (FT highlighting BAML data showing Sterling...