The mood of the markes in early 2010 can be summed up by “cautious optimism”. Fund managers appear to be happier than they have been in months.

Last week, a survey from Bank of America Merrill Lynch, which canvassed 197 managers with $542bn (€401bn) of assets, put their average cash position at 3.5% - a return to lows last seen in January, before caution reasserted itself.