The pound is also rallying this morning, up 1.5 cents against the US dollar at $1.19 – its highest level this week.
It’s also up nearly one eurocent at €1.099.
The dollar and the euro have been treated as safe-haven assets in recent weeks. So sterling’s recovery indicates that the markets are becoming less anxious about the future.
Mark Haefele, CIO at UBS Global Wealth Management, says the mood is brightening, thanks to the recent measures taken by central bankers and governments.
“We think the actions of monetary and fiscal policymakers should help us prevent a Global Financial Crisis (GFC) style credit crunch. Tuesday’s sharp equity rally shows that the combination of central banks’ entire GFC playbook and substantial, direct fiscal support can be well received by markets.”