July Market Commentary: Modest ‘risk-appetite’ was in the ascendant across financial markets in July. Growing investor comfort in the credibility of the measures taken to contain Sovereign debt concerns in Europe, and the balance of economic and earnings releases tilting generally against the case for an economic ‘double-dip’, saw the MSCI World Index gain 1.6% on the month. The former also contributed to a sharp rebound in the Euro versus the Dollar -up nearly 7%, reducing its decline in 2010 to below 10%. This strong recovery in the Euro was also evident across other currencies, providing a welcome fillip to non-Euro based investors who have stuck with Euro- denominated assets through the Sovereign debt travails of recent months.