Update: Wheels coming off all the markets. The bailout is flopping badly at least in terms of creating an initial favourable market reaction. The Nikkei’s gains ahve been cut in half.
Original post:The Nikkei is blasting higher in early Monday trading.
But it’s probably not safe to characterise that as a sign of “risk on”-ness. For one thing, the Nikkei benefits from the stronger dollar and the weaker yen, and the stronger doesn’t typically help other markets. Also, the euro is plunging and is now well below bailout levels.
US futures are sliding as well.