Dominating market commentary this week: the increased likelihood and effect of a second round of quantitative easing. Attention is firmly focused on the US, but there are knock-on effects for the European markets, which for now have taken the positive mood on board.

The credit default swap markets, a measure of the perceived likelihood of default, began this week with a rally, with the Markit iTraxx Europe index of investment grade companies tightening below 100bp for first time since August 4. Greece's spreads also look set to close below 700bp for the first time since May 31, according to Gavan Nolan, credit strategist at Markit in a note sent out at 11.00 BST.