The Fuse
What are futures doing?
Equity futures are rallying up this morning as the bulls try to shake off a few bad days in a row. More than 150 spx points have been shed since reaching new highs last Thursday. NVIDIA earnings tonight.
News
Equities in Europe fell modestly, the STOXX off .2% led lower by France and Germany. The FTSE in England was off by .5%, crude oil is down about 3%, gold off modestly but silver is higher by 1%. The US dollar index is flat. Yields are pulling back, bond traders finding some bargains with German bunds and US 10 yr treasury yields down 2bps. In Asia stocks were lower, Japan off 1.2%, Hong Kong down .5% and Shanghai off a small amoun t.
Volatility
The VIX has been rather tame but realized volatility is kicking up, which is similar to what happened earlier in the year. When realized volatility starts ramping it means what we actually expect to feel is not what is happening in the moment. A strange situation and not too common, it’s not bullish for markets.
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