Risk is back in fashion. Global share markets have entered a patch of blue sky on the back of sunnier economic reports from around the world. Growth in manufacturing in China and America, and an Australian report showing GDP expanded at its highest pace for three years has spurred immediate reactions in risk asset markets.

Originating in the Asia Pacific region, the rise in risk appetites has squeezed short sellers and forced a scramble in markets. Exchanges from Stockholm to Shanghai have shaken off recent worries to post strong gains in the last two days.

Naturally, resource and energy stocks are major beneficiaries, and financial share prices have rebounded. There also appears to be a shift into businesses leveraged to local and global economic recovery. In particular, selected consumer discretionary and information technology shares are powering ahead, as concerns about a "double-dip" recession evaporate.

Not only share markets have risen. Oil and base metals are sharply higher, and risk currencies like the Canadian, Australian and New Zealand dollars are all stronger.