It’s unusual to see both the Dispersion Index and the Implied Correlation Index up at the same time - but stock implied volatility is climbing faster than index-level implied volatility. This is likely because risk is being repriced.
Outlook
2506 posts
Newsbytes covering the ruling related to the Argentina-based energy firm YPF, Bank of Japan and the landing of typhoon Kajiki in Vietnam and China.
On Thursday, softer private hiring data and rising layoff trends fueled hopes of an imminent Fed rate move, with the S&P hitting a fresh record close.
Markets are rebounding following last Friday’s turbulence as Wall Street looks to Fed rate cuts for enthusiasm ahead of critical economic data later this week.
This insight looks at recent Health Care industry underperformance in the context of its performance in the post-Covid period. It explores the idea that US policy uncertainty may be an additional short-term drag on the industry not just in the US but globally as well.
The market spent the session waiting for Nvidia, with hedges being put on throughout the day, which is why the VIX 1-day rose from around 8 to 15.
Chair Powell signals potential rate cuts, UK inflation remains high, Japan’s CPI surprises, and global data releases offer mixed signals on growth, sentiment, and monetary policy direction.
Inflation continues to give mixed signals, which can unsettle investors who anticipate the Fed adjusting rates at its September meeting.
When data pushes and pulls in opposite directions, like Dr. Doolittle’s fictional animal, traders should be prepared for anything. And prior Jackson Hole conferences have shown that Powell can be anywhere from even-handed to strident.
Oil prices have long been one critical driver for macro and equity performance. Amid a volatile oil prices backdrop, we think it is crucial for investors to understand the correlation between oil prices and APAC equity markets.
Unlike income taxes, which are progressive, tariffs function like a sales tax—affecting all income levels equally and hitting lower-income consumers harder.
There will be three large Treasury settlements on Tuesday, Thursday, and Friday. One can only make an educated guess as to where the funding will come from. Will the reserves take a hit?