The Fuse
What are futures doing?
Futures were up nicely a bit ago but after a hot CPI number they have turned down considerably. This shock has put a modest bid in the vix and pushed rates up sharply. This is a tough hole to dig out from today.
News
Solid gains in Europe with STOXX up .34% led by France and Germany. FTSE was up .2%. Gold is getting hit as is silver, crude oil climbing and is now at 95 WTIC. The dollar was slightly lower. Bund yields fell overnight to 3.45%, 10 yr yields are ripping higher, back above 5.3%. In Asia, down across the board with Japan, Shanghai and Hong Kong losing ground.
Volatility
VIX jumped after that hot CPI number and remains elevated but not as much as you would think. Seasonal trends and earnings are keeping the market from getting hammered but at some point the dam will break if rates and oil do not come back down.
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