An improvement in market sentiment is tentatively holding as several key markets teeter on the brink once more. In recent sessions we have seen a push back against the tide of falling bond yields and this has helped risk appetite. A key element in this has been the suggestion that Germany would finally be willing to end its balanced budget policy in order to counter the prospect of recession. Fiscal expansion in Germany would be a major shift in policy (and something that would make ECB President Mario Draghi a very happy man). This along with China announcing new lending rates would be slightly lower has helped to ... (full story)