With the eco calendar almost empty markets only had to cope with two topics: the potential consequences of the Evergrande credit debacle and the Fed policy decision. Regarding the first one, investors for now conclude that the impact for markets outside China, directly via credit exposure and indirectly via the broader impact on Chinese growth/Chinese demand for foreign goods, should be manageable. For a second consecutive day European equities, which are more sensitive to developments in China, outperform their US counterparts. European indices again recoup about 1%. Monday’s loss hasn’t been reversed yet, but a close of the EuroStoxx 50 north of the 4082 neckline would give some comfort. US indices gain about 0.5% shortly after the open. For now, this risk-rebound mainly occurred on equity markets. Some hard-hit commodities (Iron ore, copper, oil…) also entered calmer waters. The impact on bonds and FX is much more modest. These markets keep a wait-and-see bias ahead of this evening’s Fed decision. Both US and German yields are hovering around the flatline. Intra-EMU spreads narrow up to 2 bp (Spain/Italy). The US dollar mostly trades little changed (DXY 93.25, EUR/USD 1.1730). Remarkably, the usual FX safe havens, the Swiss franc and the yen, are parting ways. The CHF extends its comeback (EUR/CHF 1.0820). The yen eases with USD/JPY returning to the mid 109.50 area. Sterling remains in the defensive ahead of tomorrow’s BoE meeting. EUR/GBP is nearing the 0.8614 short-term top/resistance.