There is a nervousness that hangs over the capital markets. Although US banks shares recovered at the end of last week, many continue to see sector’s challenges as the harbinger of a dramatic reversal in the Fed’s stance. America’s debt ceiling looms large and could be a few weeks away. China led Asia Pacific bourses higher, and, ironically, its bank shares extended their rally. Japan, returning from last week’s holiday was notable exception. Relative strength of the yen seemed to offset the modest regional gains, weighing on Japanese equities. Europe’s Stoxx 600 is extended the gains from the end of last week, ... (full story)