Sentiment Improvement Not Convincingly Risk-On as Caution Persists — Market Talk
Risk appetite has improved from a gloomy start to the week but an undertone of caution persists, says Mizuho Securities' Vishnu Varathan. Crypto's comeback overnight dovetailed with a pick-up in equities and bonds, but the confluence of "feel-good" markers looks more like a respite than full-throated "risk on," he says. Bitcoin is still down nearly 27% from its October peak--even after a rally fueled by crypto-friendly remarks from the SEC. The pick-up in stocks remains selective, with spots of sell-offs suggesting lingering worries about frothy valuations. Meanwhile, gold is up 63%. Bulls may be tempted to say the current phase is a correction and year-end profit-taking, but the dissonance between risk assets and safe havens is enough to question if rallies will carry on in 2026. ([email protected])