Global Financial Market Volatility Crashes, China Warns “‘National Team’ Deeply Involved”

Jon Alternative Media, Banking, Blogosphere, Economy, Fiscal Policies, Market Commentary

Price swings in financial markets have become increasingly muted as investors mull the outlook for monetary policy in the world’s biggest economies, but with a little turbulence starting to creep into markets, this record-breaking collapse in risk perceptions (and record levels of leveraged speculation) is a recipe for disaster.
As Bloomberg details, The Bank of America Merrill Lynch GFSI Market Risk Index, a measure of future price swings implied by options trading on global equities, interest rates, currencies and commodities, fell this week to itslowest level since Dec 2015…
Different asset classes are influencing one another by the most since at least 2008, according to a Credit Suisse Group AG gauge known as the cross-market contagion indicator that tracks price relationships in equities, credit, currencies and commodities.
‘With the Federal Reserve and Bank of Japan meetings ahead of us, investors can’t make any out-sized moves before the major events are over,’ said Takashi Hiroki, chief strategist at Monex Securities in Tokyo. ‘We have a lack of reasons to move, and have been seeing a directionless market for some time.’ The torpor in stock markets is going global. A gauge of volatility in global equities has dropped to levels last seen two years ago..

This post was published at Zero Hedge on Sep 9, 2016.