RISK ON: Markets Around The World Are Rallying Again

Markets around the world are in rally mode again. Today's modest gains add to the big comeback we've seen since the big sell-off earlier this month.

U.S. futures are pointing to another up day. Dow futures are up 31 points and S&P 500 futures are up 3 points.

"The S&P 500 has recovered all of the 65 point fall from July 31 to August 7," wrote Societe Generale's Kit Juckes. "'Risk' is 'on' again by that measure, and if you include press reports of large fund managers buying US junk debt, or look at falling volatility, tighter spreads more generally."

In Europe: Britain's FTSE 100 is up 0.5%, France's CAC 40 is up 0.3%, Germany's DAX is up 0.9%, and Spain's IBEX is up 0.4%.

Earlier, we learned UK consumer prices fell by 0.3% month-over-month in July, which was worse than the -0.2% expect. On a year-over-year basis, CPI climbed by just 1.6% year-over-year, missing expectations for 1.8% growth. All of this gives the Bank of England room to keep monetary policy loose for longer.

Asia closed higher with Japan's Nikkei up 0.8% and Hong Kong's Hang Seng up 0.6%.

Here's a Bloomberg chart of the S&P 500 showing the brief sell-off and remarkable comeback.