Implied volatilities – the market’s best guess at short-term-future uncertainty – collapsed last week across every asset class from FX to equity. For now, as Bloomberg’s Richard Breslow notes, markets seem comfortably calm amid the real storm of macro, micro, and geopolitical risks, but many of the same ‘calm’ markets are at critical technical levels putting them all “in play.”
Also sprach Draghi: an ECB meeting for all and none, but as Bloomberg’s Richard Breslow explains, the bottom line is that he said little, promised less and the markets survived just fine. There was little clamoring for, nor palpable financial condition stress requiring, immediate action — and he obliged. He bought himself full optionality for December at no cost. Under the circumstances, it gives an interesting twist to the moniker Super Mario.
This post was published at Zero Hedge on Oct 24, 2016.
Follow on Twitter
Recent Comments