Risk sentiment is certainly picking up on the session with S&P 500 futures now up 65 points to 4,070, or up 1.6% on the day. Nasdaq futures are up 2.1% while Dow futures are also seen up 1.2%. The positive mood is also helping to see European indices rally with gains of around 1.3% to 1.8% mostly across the board.

As much as there is room for optimism, this is still perhaps just the market letting off some steam after the unrelenting pressure since April. The dollar is also seeing a bit of a pullback as risk optimism improves on the session.

I'm not seeing any major headlines that is leading to the surge in risk appetite but after all the deleveraging talk in the past month, it's looking like risk flows are returning back to being a key driver - at least for now.