Credit Agricole CIB Research discusses the latest readings from its risk sentiment indicator (Risk Index), which stands at neutral level this week.
"At 0.22 (vs 0.64 last week), our Risk Index moved back into neutral territory. Better sentiment was well reflected in falling credit spreads, lower safe haven assets such as gold and underperforming defensive stock market sectors such as utilities. In G10 FX, risk sensitive currencies such as the NOK and SEK should stay a buy on dips with our year-end outlook staying in favour of strength," CACIB notes.
"Elsewhere, gold has been under pressure this week. We do not exclude additional corrective downside risk in gold (USD/oz) in the short term. Our long-term view, however, stays constructive," CACIB adds.