The Fuse
Equity futures are rallying smartly this morning following a strong day Monday which saw indices reverse early losses to post a better than 1% gain. We often see a turnaround Tuesday but this is earnings season, that may be passed this week.
News
Nice gains in Europe with STOXX higher by .6% led by strong gains in Germany and lesser gains in France. FTSE was higher by .3%, the dolalr fell .2% while gold is modestly higher, silver up about 4%. Crude oil is down about 2%. Yields are falling, German bund yields off 5bps, 10 yr US treasury yields off 1bp, while in Asia stocks were higher, Japan gained 2.4% while Hong Kong and Shanghai up 1% each.
Volatility
VIX has been sliding for days now since last week’s crash in volatility. If the trend continues the VIX could make it way a bit lower before some protection starts to get bought. That might be just under 17%.
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