Markets Are Surging Worldwide, Risk Appetite Comes Back With A Vengeance

Britain's FTSE 100 is up 0.8%.

France's CAC 40 is up 1.0%.

Germany's DAX is up 1.2%.

Spain's IBEX 35 is up 1.1%.

Italy's FTSE MIB is up 1.0%.

Hong Kong's Hang Seng closed up 1.4%.

Japan is closed for a holiday.

Societe Generale's Olivier Korber and Sebastien Galy sum up the two market-moving weekend headlines in their FX Daily note:

Risk appetite back with a vengeance
By far the two most important overnight news are: 1) Summers withdrew his name from the Fed race. On Friday betting websites were giving 85% probability of him replacing Bernanke; he was seen as relatively hawkish. 2) Russia and the US struck a deal, where Syria will reveal its chemical stockpile in a week, and the weapons will be eliminated by mid 2014. S&P futures up by more than 1%. Dollar weak across the broad.

Later this week, the Fed holds its two-day FOMC meeting, which is when economists expect to hear that the Fed is tapering its monthly purchases of $85 billion worth of Treasury and mortgage-backed bonds.