Credit Agricole CIB Research discusses the latest readings from its Risk Index.
"At -0.56 (vs -0.53 last week) our Risk Index remains in risk seeking territory. However, details are less constructive given the rising equity volatility and widening credit spreads. In addition, defensive stock market sectors have been outperforming," CACIB notes.
"While all of the above does not need to act as a harbinger of spiking risk aversion, it still implies investors are turning more cautious going into the end of the year. In G10 FX, we stay in favour of longs in gold," CACIB adds.