Caution: market sentiment is fickle - ANZ

Market sentiment is quite fickle at the moment with the caution of the past few trading sessions replaced with a pick-up in risk appetite overnight. 

Key Quotes:

"There was nothing special that prompted the move, perhaps outside of some easing of anxiety over North Korea, and signs the Trump administration may be getting some momentum back on tax reform. 

Sentiment is yo-yoing in thin summer markets ahead of the Jackson Hole symposium. ECB Vice President Constancio spoke on inequality and macroeconomic policies, but made no reference to ECB policies. 

Both yen and euro gave back some of their recent gains, which helped sentiment towards risk assets in those markets. 

The DAX rose 1.4%, the CAC 40 rose 0.9% and the FTSE 100 rose 0.9%. The S&P 500 is currently up 1.0%. 

Bond yields edged higher, with the yield on the US 10-yr note back at 2.22%. Oil continued its firmer run, with WTI up 0.6% at $47.6/bbl. Gold fell 0.5%."