Credit Agricole CIB Research discusses the latest reading from its Risk Index.
"At -0.56 (vs -0.58 last week) our Risk Index remains broadly unchanged in risk-seeking territory. This is mostly due to lower equity market volatility and tightening credit spreads. FX volatility, in contrast, rose," CACIB notes.
"In addition, defensive stock market sectors such as utilities have been outperforming. While this could be reflective of increased caution among investors, it may also mean that there is less scope for material corrective downside from current levels," CACIB adds.