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Risk-on mood sends Wall St to fresh highs 

July 14, 2016

Dave Shellock, Financial Times

A steady improvement in risk appetite propelled US stocks to record highs for the second day in a row as bulls took heart from an easing of Brexit concerns, a more confident view of the global economy and the prospect of continued central bank accommodation.

US, German and UK government bond prices continued to retreat, the yen fell to its lowest level against the dollar for more than two weeks and gold was heading for its lowest close since the start of the month. Sterling approached the $1.33 level against the dollar for the first time since July 4.

“The risk-on mode continues to make its comeback in global financial markets, as participants are coming implicitly to the conclusion that the entire Brexit affair will probably become manageable with limited spillover effects in the coming months,” said Anthony Karydakis, chief economic strategist at Miller Tabak.

“The behaviour of all key markets that had recently been viewed as reliable gauges of the anxiety surrounding the UK vote suggests that a significant change in sentiment is under way.” Read more

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