Although such concerns remain, there has been an improvement in the market’s risk appetite due to last month’s employment statistics, which showed the steadiness of the U.S. economy, and to the proactive stance of the European Central Bank (ECB) on additional monetary easing.
Although there are heightened expectations among market participants that the interest rate hike will be implemented in the United States at the Federal Open Market Committee (FOMC) meeting this December, there has been no sign so far of the risk aversion trend flaring up again, as the Federal Reserve has carefully engaged in communication with market participants.