-
Positive risk taking hold once more amidst EU Recovery Fund agreement
A positive tone to risk has taken hold once more, which is helping to drive several major markets out of a phase of consolidation. After starting discussions on Friday, four days later, EU leaders have finally come to an agreement on the composition of the EU Recovery Fund. A €750bn pandemic recovery package comprising of €390bn of grants and €360 in loans. This is a key moment for the EU as the money will be raised by the European Commission through the capital markets and is a first step towards debt mutualisation. Markets are reacting positively, with core/peripheral yield spreads falling to multi-month ... (full story)