But can the optimism stay the course?
S&P 500 futures are up by 0.6% currently as equities display more calm ahead of European trading. But much like the fluctuating risk mood as of late, can the optimism here stay the course until the end of the day?
After soggy US data yesterday, it is hard to see why investors should be so quick to turn the corner given that it is but a precursor of where the economy is headed towards in the coming months - adding to the backdrop of a trade dispute with China.
But as ever before, hope springs eternal.
Fed's Bullard comments about a 50 bps rate cut may be giving investors some tunnel vision but they are largely offset by Rosengren's comments on staying put in my view.
However, the closer investors are to realising why central banks are cutting rates, I reckon the closer we will be to seeing a top in the equities market in the bigger picture.
For now, the signs are still pointing towards some decent demand in dip-buying. Let's see how long that can last given waning trade/economic conditions as we close out the year.
Looking ahead today, I wouldn't get too carried away on the optimism seen above but so far bond yields are also holding slightly higher on the day. It may be a bit of a retracement to yesterday's moves but I'm not one to jump on any risk-on bandwagon as I don't see that being sustainable for the time being.
