Financial markets stabilised yesterday as a rally for Chinese stocks, better news from US retailers and further signs of improvement in the German economy helped investors put Monday's turbulent session behind them.
But the underlying mood remained cautious as investors continued to question whether the rally in risk assets over the past five months had got ahead of itself.
“Asset prices continue to dance around in a summer trading environment characterised by seasonally low volumes,” said Francesco Garzarelli, economist at Goldman Sachs.
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