Markets climbed this afternoon following a worse-than-expected jobs update in the US, as investors anticipate the Fed will now have to delay QE tapering.
Where should investors be looking for opportunities around the globe?
Emerging market currencies hit fresh lows after minutes from the latest Federal Reserve meeting made the prospect of tapering this year all but a certainty.
Federal Reserve officials are united in their support for tapering bond purchases but split on the precise date of the move, according to the minutes of its latest rate setting meeting.
The increasing likelihood of former US treasury secretary Larry Summers becoming Fed chairman next year has prompted a further spike in bond yields, analysts suggest.
The continued rise in US treasury yields has raised concerns the broader economic recovery may be under threat if the sell-off continues.
Ben Bernanke has successfully calmed markets' June nerves but is now concerned with how quickly risk appetite has returned, according to Ruffer investment directors Hamish Baillie and Steve Russell.