Latin American Economy & Business - December 2012-January 2013 (ISSN 1741-7430)

Globally, most emerging markets stocks and bonds performed well in January. Investors regained their appetite for risk. This was thanks in part to the last-minute deal between President Barack Obama’s administration and the Republican leadership in the US Congress over the ‘fiscal cliff’. It was also partly due to the announcement of a new and very aggressive easing in fiscal and monetary policy in Japan. Meanwhile, economic data suggested that the worst of the recession in the euro area is past.