Developments in global financial markets  Global financial markets had been tied up in a Goldilocks situation until summer 2014, in which investors had been searching for yields under low volatility conditions. As the outlook for the world economy became cautious, however, a temporary heightening of investors’ risk aversion and an overall increase in market volatility were observed in early autumn.
International commodity prices declined, as mentioned earlier, and long-term interest rates fell in reflection of flight to quality. Such risk aversion has waned recently, and stock prices are firm globally, but international commodity prices remain weak.