Despite the recent rally world markets remain in “risk off” mode and are now awaiting the next catalyst.
There are any number of potential negative catalysts out there. Later today for example, the US Department of Labour will release the latest Initial Jobless Claims data, and if the number has ticked up that will be bearish for the market. However it doesn’t necessarily mean that US markets will selloff. It’s actually just as likely that they will rally on anticipation of further stimulus from the Federal Reserve.