U.S. election is just one risk among many for nervous stock market

Growing risks to the U.S. stock rally are spurring demand for portfolio hedging, options markets showed, as investors grapple with U.S. economic uncertainty, shifting Federal Reserve policy and a looming presidential election.

The VIX typically rises around 25% between July and November in election years, as investors sharpen their focus on the market implications of candidates’ policy proposals, BofA data showed. “This is an uncertain market,” said Matt Thompson, co-portfolio manager at Little Harbor Advisors. “The market is essentially saying, we know risk is elevated, but ... we don’t know what the problem is going to be.”

In the 2020 and 2016 election cycles, the futures curve presented a 7.3 and 3.4 point gap, respectively, between the months with the highest and lowest volatility, a Reuters analysis of LSEG data showed.The VIX has been in sharper-than-usual focus for investors in recent weeks after the index posted its largest ever one-day spike on Aug. 5, during a sharp market sell-off spurred by economic worries and an unwinding of the global yen carry trade.

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Stocks are full steam ahead amid econ data, volatility dropStocks (^DJI, ^IXIC, ^GSPC) are charging ahead at Thursday's market open, riding high on July's retail sales data and the most recent jobless claims print...
La source: YahooFinanceCA - 🏆 47. / 63 Lire la suite »

Asian Stocks Eye Mixed Start as Volatility Wanes: Markets Wrap(Bloomberg) -- Asian stocks were poised for a mixed open on Monday as traders shifted focus to key US data prints this week after a volatile start to August....
La source: YahooFinanceCA - 🏆 47. / 63 Lire la suite »