If you're following the ongoing European sovereign debt and banking crisis, expect to hear increasing discussion of whether eurozone countries should "default now or default later?"

Global equity markets are firmer today. The MSCI Asia-Pacific Index rose 0.8%, its first increase in three sessions. Foreign demand for Philippine shares remains strong; already this month nearly 20% of the year-to-date foreign purchases of Philippine stocks have been recorded. With today’s 2.6% rise, the Philippine Stock Index is up almost 9.5% thus far in September. The Bank of Korea surprised many by keeping rates steady earlier today, but it was worth a modest 0.3% in the Kospi. Of note, the Shanghai Index fell 1.4%, its largest drop in a couple of weeks, led by financials and metals. There were reports suggest that Chinese regulators may be investigating recent trading in rubber. Meanwhile European bourses are 0.3%-0.7% near midday in London. Basic materials and technology shares are leading the way, but financials are also participating.

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Following last week’s show of health in the shape of reasonable U.S. job creation, investors find themselves at the start of the same cycle witnessed back in the second quarter. Growth around the world appeared to be picking up at the time, while the punishment ailing the euro began to run out of steam. The risk-on rally reflected the disappearance of clouds on the horizon. As we fast forward to today, a similar picture is emerging. The pressure is once again off the U.S. economy as the modest pace of improvement continues. Decoupling is once again emerging as a theme now that a Chinese slowdown has passed the turning point. Once again the emergence of clouds across Europe surrounding a worrisome sovereign debt crisis is detracting from overall risk appetite as the euro and British pound stand out as heavyweights again today.