20:30 GMT. A much more positive mood than of late enveloped markets on Tuesday, as traders appeared to reason that a tougher tone from the EU towards Greece might help contain the eurozone’s debt difficulties.
The euro bounced back sharply from nine-month lows, the FTSE World equity index rose 1.4 per cent and commodity prices perked up, as an improvement in risk appetite saw investors take more bets on positions that favored global growth.
“The euro is perky today because the short term speculative market has become limit short. They are now having to unwind their positions as it’s clear Greece isn’t in any danger of defaulting imminently,” said Mansoor Mohi-uddin, currency strategist at UBS.