The day continued positively on the Asian markets: shares on the continent rose, the euro rose too and mortgage refinancing rose in America. The so-called aversion to risk has long been a key to understanding the ups and downs of the markets over the months of this bumpy recovery.
The wind vane of risk has been moving up the flagpole lately. This can be seen in the renewed and ill-advised interest in Internet companies and commodity bubbles. But the situation is different than at the time of the dot.com stock explosion. Apart from a few isolated cases, such as in the recent IPOs of Linkedln and Yandex, the prices have kept in touch with the growth of profits.
And in Asia, the fundamentals of growth are robust and well. Confidence in the continued demand for raw materials strengthened the New Zealand dollar (butter is also a commodity) and the Australian dollar, which has also recently benefited from the return of those risky carry trades that favor high-yield currencies (the key rate in Australia is at 4.75%).
Source: shm
