Equities and currencies markets saw a sharp rise in volatility into the end of last week, and this led safe haven assets (such as the US Dollar and consumer staples stocks) into some heavy selling pressure. Generally, when markets see abrupt changes and volatility increases, equity markets and high-yielding tend to encounter sell-offs, but this was not the case last week. Optimism generated by the positive outcome in the EU Summit meeting brought buyers back into the weak Euro and stock markets in most regions. Additional support for troubled European economies (Italy and Spain, in particular) was pledged, and this was more of a total response than markets were expecting. Read more…