Risk sentiment is seeing fresh signs of life following a Bloomberg report that the European Union (EU) is set to outline a plan this week to jointly issue bonds on a potentially massive scale to finance energy and defense spending.

Additional details

“The proposal may be presented after the EU’s leaders hold an emergency summit in Versailles, France, March 10-11.”

“Officials are still working out the details on how the debt sales would work and how much money they intend to raise.”

Market reaction

Amid a renewed risk-on wave, the S&P 500 futures recovered losses, last seen up 0.20% on the day.

Meanwhile, gold prices fell back to test $2,000 after hitting the highest level since August 2020 at $2,021.